Government Savings Bonds in Canada
Canada Savings Bonds (CSB) are a safe, secure investment currently held by millions of Canadians. The CSB offers maximum flexibility and security. It is available in both regular interest or compound interest form, and can be purchased from early October to April 1 each year.
A series of Bonds is issued each year. The interest rate for each series is set by the government. This is a guaranteed interest rate, which will increase should market conditions warrant, but will never fall below the posted rates during the priced period.
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A Savings Bond is cashable at any time, the money is never l
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ocked in.
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It is backed by the Government of Canada
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It has no fees of any kind
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It can be held in The Canada RSP, The Canada RIF as well as in self-directed plans
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It is available with regular or compound interest
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The Minister of Finance may end the sale of bonds at any time
The maximum amount of principal that a person may own per series and per type of registration of CSBs and CPBs is $500,000, respectively.
A person may own CSBs and CPBs above this limit if they are purchased with the proceeds of a maturing series, or because the person received them upon the death of the owner or a co-owner.
Otherwise, the Minister of Finance may order a person to redeem the CSBs and CPBs in excess of the maximum limit.
