Buying savings bonds for RRSPs and RRIFs

Note: Canada Savings Bonds Program is no longer available

As of November 1, 2017, the Government of Canada is no longer offering the sale of Canada Savings Bonds (CSBs) or Canada Premium Bonds (CPBs).

For additional information on CSBs, CPBs related to your current Canada Savings Bonds Program investments, visit the Canada Savings Bonds Program website. If you have any questions related to the program, please refer to the Q&A section of the website.

Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs) are lower-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 buy or sell a savings bond.

How it works

  1. You can buy savings bonds for a self-directed RRSP or RRIF. Ask your financial institution or investment firm for details.
  2. You can also contribute the interest you earn on savings bonds to your RRSP. To set this up, call the Canada Savings Bonds Customer Service Centre toll-free at 1-800-575-5151.
  3. You can cash in CSBs and CPBs at any time. However, when you cash in a CPB, you earn interest only up to the last anniversary date of the bond. Since CSBs earn interest to date, if you want more flexibility with your RRIF, you may be better off buying CSBs.

Visit the Canada Savings Bond website for more information on buying savings bonds for RRSPs and RRIFs.

Canada RSPs and Canada RIFs

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:

  1. 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.
  2. Defers tax – Like any RRSP contribution, you’ll get a tax deductionTax deduction A cost that you can deduct from your income when you file your taxes. This lowers the tax that you owe. For example, if you contribute $5,000 to your RRSP, you can deduct $5,000 from your income when you file your taxes.+ read full definition if you buy bonds for your RRSPRRSP See Registered Retirement Savings Plan.+ read full definition.
Key point

CPBs can only be cashed in once a year. If you want flexibility with your RRIFRRIF See Registered Retirement Income Fund.+ read full definition, you may be better off buying CSBs.

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