Canada Savings Bonds

Canada Savings Bonds are investment devices issued by the Canadian Government. Canada Savings Bonds are sold between the months of October and April each year. Canada Savings Bonds are not similar to a truly sellable bond and they are basically forms of debentures.

In short form, Canada Savings Bonds are called as CSBs. The Bank of Canada issues the CSBs and these financial instruments provide competitive interest rates and carry a secured lowest rate of interest.

Canada Savings Bonds can be categorized into the following types:

Canada Premium Bonds: These bonds can be bought in combined and regular interest rates. They are distinct from the regular bonds because they can be encashed in every anniversary month of every year. The denominations of Canada Premium Bonds are available in Canadian $100, $300, $500, $1,000, $5,000, as well as $10,000 (the minimum denomination of the regular interest bond is Canadian $300). Canada Premium Bonds are marketed on rates up to the third year and every following year provides increased interest.

The rate of interest varies for the 7 years that are left according to the market circumstances till the time they mature. Formerly, the rates were ascertained for 5 years and they vary for the remaining 5 years. The color of the bonds is maroon and they display an image of the Ottawa Parliament Library. Nevertheless, the color of the new set of Canada Premium Bonds issued in the month of November, 2006 is golden and they depict the National War Museum.

Canada Savings Bonds: These bonds also can be bought in combined and regular interest rates. They can be cashed at any point of time and are available in denominations of Canadian $100, $300, $500, $1,000, $5,000, as well as $10,000 (the minimum denomination of the regular interest bond is Canadian $300). The rate of interest of Canada Savings Bonds is secured for 1 year and it varies according to the market situations for the last 9 years till the time they mature. The color of Canada Savings Bonds is green and they portray the Parliament Building Clock Tower in Ottawa. The new set of Canada Savings Bonds issued in the Month of November 2006 display the Cenotaph in Ottawa.
Canada Investment Bonds: These bonds can only be accessed with the help of investment brokers. They were issued from the 1st of October, 2003 and the 1st of April, 2004. They are not able to be redeemed till the time they mature and usually have a maturity period of three years. Exclusively, six separate sets were introduced. At the present time, they are not available.

Different Programs Offered with the help of Canada Savings Bonds

Normally, the Canada Savings Bonds can be bought from a financial services provider or over the Internet by the official website of the Canada Savings Bond and the certificates are sent to the investor by mail. Nevertheless, a number of plans are present in Canada where no certificates are offered and they are the following:

Canada RSP: This is a RRSP or registered retirement savings plan without any fees and this has been particularly planned for retaining compound interest Canada Savings Bonds and Canada Premium Bonds.
Payroll Deduction: The employers may offer this program to the workers at the time of marketing periods. The workers have the option to choose what should be the amount of deduction from their salary checks and this is preserved in an automatic manner till the time the worker wants to withdraw the amount. This scheme is also qualified for Canada RSP plans.
Canada RIF: This is a RRIF or registered retirement income fund, which has been planned particularly for keeping the Canada Savings Bond and Canada Premium Bond straightaway in a RRIF.