Frequently Asked Questions
The Canada Premium Bond
Q: What is the Canada Premium Bond?
The Canada Premium Bond (CPB) was introduced in 1998 by the Government of Canada to help Canadians reach their savings and investment goals. The CPB is fully backed by the Government of Canada, and offers a higher rate of interest at the time of issue than the Canada Savings Bond on sale at the same time. The Canada Premium Bond can be redeemed once a year on the anniversary of the issue date and during the 30 days thereafter. It's the smart choice for today's investor.
While the Canada Premium Bond has a 10-year term to maturity, interest rates are often announced for a shorter period and remain in effect for that announced period. At the end of that period, new rates will be announced by the Minister of Finance based on the then prevailing market conditions. Once an issue date has passed, the announced interest rates for the applicable period will not be changed.
Q: Where can I buy a Canada Premium Bond?
From early October to April 1, there are three convenient and flexible ways to purchase a CPB:
- You can order a Canada Premium Bond online at www.csbonline.csb.gc.ca
- You can buy directly by calling toll free 1 888 773-9999 Monday to Friday, from 8 am to 8 pm, Eastern Time.
- You can also purchase a CPB at most banks, credit unions, caisses populaires or trust companies across Canada, as well as through most full service investment dealers and discount brokerage companies.
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Q: When can I buy a Canada Premium Bond?
Each year, the CPB is available from early October to April 1. Click here for the specific issue dates and bond Series.
Q: Where can I find current rates?
The rates for the CPB are displayed on this Web site. They also are available wherever you bank or invest.
While the Canada Premium Bond has a 10-year term to maturity, interest rates are often announced for a shorter period and remain in effect for that announced period. At the end of that period, new rates will be announced by the Minister of Finance based on the then prevailing market conditions. Once an issue date has passed, the announced interest rates for the applicable period will not be changed.
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Q: How much can I buy?
You may buy a CPB for as little as $100. The maximum amount you can generally own per series is $500,000 per type of registration (for exceptions, please refer to the terms and conditions).
Q: When can I redeem my Canada Premium Bond?
The Canada Premium Bond is redeemable each year on the anniversary of the issue date and during the 30 days thereafter. If a CPB is redeemed during the 30 days in question, no interest will be earned for the period following the anniversary date. If the CPB is held within The Canada RIF, it is redeemable at any time without penalty if required to facilitate periodic payments.
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Q: What types of interest options are available for the CPB?
You have two options:
You can buy regular interest bonds that pay interest annually on the anniversary of the issue date until maturity or at redemption. Your interest can be deposited directly into your bank account or paid to you by cheque. These are available in denominations of $300, $500, $1,000, $5,000, and $10,000.
OR
You can buy compound interest bonds, where the interest is automatically reinvested annually so that your savings grow quicker until your bonds mature or are redeemed. These are available in denominations of $100, $300, $500, $1,000, $5,000, and $10,000.
Only compound interest bonds can be held in The Canada RSP and The Canada RIF. A Canada Premium Bond purchased within The Canada RSP or The Canada RIF does not have certificates and therefore does not have denominations. Instead, statements of account outlining the details of your investments will be issued semi-annually as at June 30 and December 31 for The Canada RSP; and quarterly for The Canada RIF.
Q: Who is eligible to own the CPB?
The CPB may be owned by Canadian residents. Federal and provincial government employees, including armed forces personnel, and their immediate family stationed outside the country may also purchase the CPB. The CPB may be registered under the name of an individual or two or more individuals with or without right of survivorship. It may also be held by estates, charitable organizations, sole proprietorships, personal trusts or in trusts governed by registered plans (such as self-directed RRSPs, RRIFs, and RESPs).
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Q: Can I buy a Canada Premium Bond for my RRSP?
You can buy the CPB for your self-directed plan, or directly within The Canada RSP. The Canada RSP is available only for compound interest bonds (C-Bonds), and there are no fees or hidden charges. The minimum CPB investment for The Canada RSP is $500 per series per registration. (See RRSP option for further details.)
Q: What are the purchase and issue dates for the Canada Premium Bond for the 2007/2008 sales campaign?
The purchase date is the date the application is completed and the funds are authorized by the purchaser to be released to the Sales Agent. The table below outlines the purchase/issue dates for the Canada Premium Bond for this sales campaign.
For transfers from a registered plan to The Canada RSP or The Canada RIF, the issue date is determined based on the application date and when the Trustee receives the application and funds.
| Issue Date |
Sales Period |
CPB Series |
| Nov. 1, 2007 |
October 1 to November 1 |
Series 58 |
| Dec. 1, 2007 |
November 2 to December 1 |
Series 59 |
| Jan. 1, 2008 |
December 2 to January 1 |
Series 60 |
| Feb. 1, 2008 |
January 2 to February 1 |
Series 61 |
| March 1, 2008 |
February 2 to March 1 |
Series 62 |
| April 1, 2008 |
March 2 to April 1 |
Series 63 |
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