- Owners of certificated bonds must present their bond certificates to their banking institution in order to be redeemed.
- Owners of Payroll Savings Plans: All bond series have achieved maturity and have been paid out automatically.
- Those who have a Canada RSP or a Canada RIF: Choose whether to take money out of your registered plan or to transfer it.
Choose a CSB or CPB
CSBs and CPBs can be redeemed at any time. When you cash in a CPB, however, you only get interest until the bond’s last anniversary date. If you want greater freedom in getting your money out, CSBs may be a better option because they earn interest.
Decide where and how to buy
CPBs can be purchased in person, over the phone, or online from a financial institution or investment firm. You can pay with a check or a bank transfer. A payroll savings plan can be used to purchase CSBs (if your employer offers one).
Find out how to get your certificates
If you buy your bonds through a financial institution, you can pick up your certificates where you bought the bonds or have them mailed to you. You won’t obtain a certificate if you buy your bonds through an investing firm or a workplace savings plan.
Is it still possible to purchase Canada Savings Bonds?
The Government of Canada declared in its most recent federal budget, presented on March 22, 2017, that the sale of Canada Savings Bonds (CSB) and Canada Premium Bonds (CPB) will end in November 2017.
On behalf of the Government of Canada, a formal notification was delivered to all Payroll Savings Plan owners and contributors from the Canada Savings Bonds Program.
Until October 2017, your CSB contributions will be taken from your monthly pension.
To discover out what this announcement means to bond owners, you are invited to refer to the “Questions and Answers” by visiting the Canada Savings Bonds Program’s website.
Is it still possible to purchase a savings bond at a bank?
Although the current 2.2 percent interest rate on Series I savings bonds is appealing, purchasing the bonds has grown more difficult. Paper Series I and EE savings bonds—those handy envelope stuffer gifts—can no longer be purchased at banks or credit unions; instead, you must purchase electronic bonds through TreasuryDirect, the Treasury Department’s Web-based system. Our reporter discovered the process of purchasing a savings bond for her young nephew to be cumbersome. Here’s help:
Is Canada a bond seller?
Bonds issued by the Government of Canada offer attractive returns and are backed by the federal government. They come in periods ranging from one to thirty years and, like T-Bills, are almost risk-free if held until maturity. With a term of more than one year, they are considered the safest Canadian investment available. Until maturity, when the full face value is repaid, they pay a guaranteed, fixed rate of interest. No matter how much you invest, the Government of Canada guarantees every penny of principal and interest. Even if you usually hold your assets until they mature, it’s comforting to know that Government of Canada Bonds are fully marketable and can be sold at any time for market value. Government is available for purchase.
Key Benefits
- Regardless of the size of the investment, the safest Canadian investments are available in Canada.
- For RSP purposes, investments denominated in US dollars are considered Canadian content.
Is it possible to purchase Canadian government bonds?
In Canada, you can buy bonds through your brokerage account or through a financial broker who will buy them directly from the issuing government or corporation.
Buying a Bond ETF
A bond fund, such as a bond ETF, is the best option to buy bonds in Canada. Bond funds can invest in corporate or government bonds, short or long-term bonds, or a combination of all three. If you’re overwhelmed by the number of options, a broad market bond fund that includes both local and international bonds of varied terms from firms and governments is a good place to start. A bond ETF is the simplest and most cost-effective way to invest in a diverse portfolio of bonds.
To buy shares of a bond ETF, just go to your brokerage account during trading hours, choose the ETF, and buy the number of shares you want to add to your portfolio. Because ETFs are traded on a stock exchange, your order will be filled and the bond fund shares will be added to your portfolio as soon as the transaction is completed. For any other ETF purchase, you will be charged the same commissions as your brokerage account.
Contact Customer Service
Contact Customer Service at 1-800-575-5151 to report a lost, stolen, or damaged certificated CSB or CPB.
- If you are under the age of majority, your parent or legal guardian should speak with a Customer Service representative (18 years old).
- If you possess a joint bond, your co-owner should contact Customer Service.
- If you are entitled to bonds registered under a personal trust, your trustee should contact Customer Service.
- If the bonds are held by a charity or an estate, proof of authority to act is required.
- If your bond was stolen, you’ll need a police report number from your local police agency.
A Customer Service Representative will provide you the forms and information you need to complete your request.
Is it possible to lose money in a bond?
- Bonds are generally advertised as being less risky than stocks, which they are for the most part, but that doesn’t mean you can’t lose money if you purchase them.
- When interest rates rise, the issuer experiences a negative credit event, or market liquidity dries up, bond prices fall.
- Bond gains can also be eroded by inflation, taxes, and regulatory changes.
- Bond mutual funds can help diversify a portfolio, but they have their own set of risks, costs, and issues.
Are Canada Savings Bonds safe?
You run the risk of receiving very low yields because Canadian Savings Bonds are deemed so safe. That means you’re at risk of losing money due to inflation in “real” terms. Your interest from CSBs may not keep up with rising prices, reducing your purchasing power in the future.