What You Need to Know
- In the 2017 Federal Budget, the Government of Canada has announced its decision to end the sale of Canada Savings Bonds (CSB) as of November 1. Refer to the Questions and Answers to find out what this means to you.
- If you currently contribute to a CSB through the Payroll Savings Program, your contributions will continue until your last pay in October or earlier depending on your organization.
- If you own a certificated CSB that has matured, it no longer earns interest and should be redeemed at a financial institution.
- The Canada Savings Bond is a safe and secure savings product, fully guaranteed by the Government of Canada.
Payroll Savings Plans
How to Redeem
Payroll Savings Plan owners can redeem their CSBs at any time on CSB Online Services. The last contribution amounts are held for 15 days from the date the deduction is received from the employer.
Access to Funds
- Up to 4 business days if you are set up for Direct Deposit.
- 7 to 10 business days if a cheque is mailed.
Joint Plans / Third-Party Plans
- If funds are held in a Joint Plan, a cheque will be issued in both Plan owners’ names, in which case both signatures will be required to cash in the cheque. Funds can also be deposited directly in a bank account that is held in both owners’ names.
- If funds are held in a Third-Party Plan, only the registered owner, not the contributor, has access to the funds.
Upon maturity, if the bonds are not redeemed, they will automatically be paid out to the registered bond owner by cheque or direct deposit according to the account information. Make sure your mailing address is up-to-date on CSB Online Services or sign up for direct deposit to ensure you receive your payment.
Read more about how to redeem your bonds.
All CSBs purchased through the Payroll Savings Program are compound interest bonds, which in addition to simple interest, accrue compound interest daily. Accrued compound interest is credited on each annual anniversary of the issue date for a particular series. Interest is earned and accrued until the earlier of maturity or redemption by the registered owner.
How to Redeem
All certificated CSBs can be cashed at any time at most financial institutions in Canada.
- If your CSB is redeemed prior to maturity, you will receive the face value of the bond plus interest earned up to the previous month.
- If you purchased a bond in your name together with the name of another individual, whether adult or minor, signatures of both owners are required at the time of redemption. A bond registered in the name of a minor (under 18 years of age) may be redeemed against the signature of a parent, guardian, or tutor who has legal custody of the bond owner.
- If you purchased a bond in the name of an individual, whether adult or minor, only the registered owner, not the purchaser, has access to the funds.
Bonds purchased through financial institutions, investment dealers and by phone will earn interest up until the maturity date. After that date, no additional interest will be paid out and should be redeemed.
Certificated CSBs - Regular Interest Bonds
Regular interest bonds accrue simple interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Simple interest is accumulated monthly and is paid to the registered owner by cheque or through direct deposit on each annual anniversary date until maturity.
As interest payments are prepared and issued during the 11th and 12th months following the issue date and annual anniversary dates, if regular interest bonds are redeemed during these months, an amount equal to the interest earned since the last anniversary date will be deducted from the proceeds of redemption as that amount will be included in the registered owner’s annual interest payment.
Certificated CSBs - Compound Interest Bonds
Compound interest bonds accrue, in addition to simple interest, compound interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Accrued interest will be credited on each annual anniversary date for a particular series until maturity. At the time of maturity, you may redeem your bond where you bank or invest and you will receive the full face value of the bond plus all interest earned.
See interest rates for unmatured and matured CSBs.
Services for CSB Owners
Find out about address and legal name changes, bond exchange and other services for CSB owners.