Canada Savings Bonds (CSBs) or Canada Premium Bonds (CPBs) are low-risk investments you can buy for your retirement savings. The interest rate may go up while you own these bonds, but it will not go down. And, there are no fees to pay.
How it works
- You can buy savings bonds for a self-directed Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF). Ask your financial institution or investment firm for details.
- You can also contribute the interest you earn on savings bonds to your RRSP. To set this up, call toll-free at 1-800-575-5151.
- CPBs can only be cashed in once a year. So if you want flexibility with your RRIF, you may be better off buying CSBs.
CPBs can only be cashed in once a year. So if you want flexibility with your RRIF, you may be better off buying CSBs.
Canada RSP and Canada RIF plan holders
These government-sponsored plans are no longer available to new customers. If you already hold a Canada RSP or Canada RIF, your plan won’t be affected. Learn more about the rules for these plans.
2 tax advantages
Holding your savings bonds in a registered account will give you certain tax advantages:
- Shelters the interest earned–For bonds held in RRSPs and RRIFs, you will not be taxed on the interest earned until you take the money out.
- Defers tax–Like any RRSP contribution, you'll get a tax deduction if you buy bonds for your RRSP.