Certificated Bonds
- What is the Canada Savings Bond?
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Canada Savings Bonds were created in 1946 by the Government of Canada to help Canadians reach their savings and investment goals. As of October 2012, certificated Canada Savings Bonds (CSBs) can no longer be purchased at financial institutions, through dealers, online, or by phone.
- What is the Canada Premium Bond?
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The Canada Premium Bond (CPB) is the only product available for sale through financial institutions, dealers and CSB Customer Service. It is a safe and secure savings product issued and fully guaranteed by the Government of Canada.
As of 1 August 2012, Canada Premium Bonds can be redeemed at any time during the year, with the interest being paid up until the last anniversary date of issue. Valid Hardship redemptions will continue to receive interest paid up to the month prior redemption See Terms & Conditions for more information.
The Canada Premium Bond has a three-year term to maturity, with interest rates announced for a same period and remain in effect for that announced period.
- When and where can I buy a Canada Premium Bond (CPB)?
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CPBs are available from early October to 1 December. There are two ways to purchase a certificated CPB:
- you can buy by calling Customer Service;
- you can also purchase directly at most banks, credit unions, caisses populaires or trust companies across Canada. You can also purchase a non-certificated CPB through most full-service investment dealers and discount brokerage companies.
- Where can I find current rates?
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The rates for the CPB are displayed on this website. They are also available wherever you bank or invest.
- How much can I buy?
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You can 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).
- What types of interest options are available for the CPB?
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- Regular-Interest Bonds pay interest annually until maturity on the anniversary of the issue date or at redemption. Your interest can be deposited directly into your bank account or paid to you by cheque. Regular-Interest Bonds are available in denominations of $300, $500, $1,000, $5,000, and $10,000.
- Compound-Interest Bonds, where the interest is automatically reinvested annually so that your savings grow quicker due to compound interest until your bonds are redeemed or mature. These are available in denominations of $100, $300, $500, $1,000, $5,000, and $10,000.
- Who is eligible to own a CPB?
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Only a Canadian resident may own bonds.
- When can I redeem my outstanding CSB or a CPB?
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All outstanding CSBs can be redeemed at any time. You will receive the full face value plus all the interest earned for each full month that has elapsed since the issue date or until either the maturity date or the redemption date, whichever comes first.
Certificated Canada Premium Bonds can be cashed at any time at most financial institutions in Canada, with the interest being paid up until the last anniversary date of issue.
- How can parents cash their children’s bonds?
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A bond registered in the name of a minor, who is unable to sign his/her name, may be redeemed against the signature of a parent, guardian, or tutor who has legal custody of the bond owner. The birth certificate (or other proof of age document) of the bond owner will be needed as evidence of age.
In the case of a person born and baptized in the province of Quebec, a certificate of baptism may be accepted as evidence of age. If an official guardian or tutor is signing, a certified copy of the guardianship or tutorship papers is required.
- How do I replace bonds that have been lost, stolen or destroyed?
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If your certificated bonds have been damaged or lost, please call Customer Service. In the case of stolen bonds, you should also notify your local police department as you will require their report number.
When notifying the Bank of Canada, try to provide as much information as possible, including the complete bond serial number and the exact name (registration) on the bond. When you purchase bonds, we suggest that you keep a separate record with all your bonds’ serial numbers, as this information will be useful to you when reporting loss, theft, or damage.
To avoid unnecessary delay, it is important to report the loss of your bonds to us immediately. Once we are notified, there is a prescribed waiting period of 120 calendar days before we can begin the process of having your bonds replaced. The waiting period is applicable for both unmatured and matured bonds.
If you have not found your lost bonds during the waiting period, you will need to contact us again to obtain the necessary Bond of Indemnity documentation to fill out. Upon receiving and approving the properly completed documentation, we will replace your unmatured bonds or issue a cheque for the value of your matured bonds.
- Can I choose whether a bond purchased as a gift is sent to me or to the gift recipient?
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This depends on which method you use to purchase the bond:
- If you purchase the bond where you bank or invest, it can be given directly to you.
- If you contact Customer Service to order the bond by phone, you can choose to have it mailed to yourself or to the gift recipient (the registered owner).
- Can I purchase a bond for a child and, if so, do I need his/her SIN number?
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A child can be the registered owner of Canada Savings Bonds. Simply provide the name and address of the child when you place your order. If the child does not have a SIN number, your purchase can still be processed.
- I want to know if my gift will arrive on time for a birthday or other event. How long after I make the purchase will the bond be received?
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The delivery time is measured from the issue date of the bond to the day you receive the bond. You should receive your bond within six to eight weeks following the issue date.
- Can I arrange for you to mail my gift card to the recipient at the same time as the bond?
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When you purchase a bond as a gift, you can take advantage of a complimentary gift card but we cannot mail the bond and card together. To give the bond and card together, you will need to have them both sent to you, and then you can present them in whatever ways best suits you.
- Can I purchase Canada Premium Bonds in a TFSA?
- You can purchase a Canada Premium Bond in a TFSA through an investment dealer. Please speak to your financial adviser for further information.
- Can I place my certificated Canada Premium Bond in a TFSA?
- You can speak to your financial advisor on how to include your Canada Premium Bond in a TFSA. Some exceptions may apply.
- I currently purchase Canada Savings Bonds on the Payroll Savings plan through my employer. Can I transfer my Canada Savings Bond to a TFSA?
- You can speak to your financial advisor on how to include Canada Savings Bonds in a TFSA. However, you will need to redeem your Canada Savings Bonds from your Payroll Savings Plan since they cannot be transferred directly into a TFSA.
- I currently own Canada Savings Bonds in a Canada RSP or Canada RIF. Can I transfer these bonds to a TFSA?
- The TFSA is not designed to hold registered products. For further information, you can speak to your financial advisor.
- Where can I find more information on TFSA?
- For more information on TFSA, please visit the Canada Revenue Agency website, or the TFSA website.
