The Canada Savings Bonds (CSBs) is one of the savings bonds offered by the Canadian government.

Canada Savings Bonds (CSBs) are available only through the Payroll Savings Program. The annual sales campaign runs from early October to 1 November. Employees wishing to contribute to a Payroll Savings Plan usually have to visit the Employee web page or go directly to CSB Online Services.

Mostly the financial institutions in Canada are the ones that are used to cash outstanding certified Canada Savings Bonds. Once that is done you will receive the full face value plus all applicable interest earned for each full month elapsed since the issue date.

Features of the Canada savings bonds

1)CSBs have a lower interest rate. That's because you can cash them in at any time and get interest earned to date.

2)No fees is paid when you buy the Canada savings bonds.

3)One can buy a savings bond for as little as $100.

4)Canada Savings bonds have a 3-year term. Interest rates are usually set for shorter periods.

5)With the Canadian savings bond, one earns a guaranteed interest rate. The rate can go higher during your bond's term, but it cannot go lower.

6)You can hold Canadian savings bonds in registered investment accounts like TFSAs, RRSPs, and RRIFs.

7)The Canadian Savings bonds are available to residents of Canada only.

8)Canada Savings Bonds are only available through the person who has employed you if they offer a payroll savings plan.

9)CPBs are purchased through financial institutions, investment dealers or by telephone. 

=> Financial institution or investment dealer – these include most banks, cuisses, credit unions, populaires or trust companies across Canada. Also it can be through most full-service investment dealers and discount brokerage companies.

=> Using telephone - to purchase CPBs by phone, one have to contact Certificated Bond Owners.

Types of interest bonds offered in Canada Savings Bonds

1)Interest payments made each year on the anniversary of the issue date - Regular-interest bonds

2)Interest automatically re-invested each year - Compound-interest bonds

Plans offered through Canada Savings Bonds

CSBs are purchased at a financial institution or online at the CSB website and certificates are mailed to the investor. However in the following plans certificates are not issued.

A)Canada RSP - a no-fee Registered Retirement Savings Plan (RRSP) that is designed specifically for holding Canada Savings Bonds interest. However this product is no longer offered to new customers.

B)Canada RIF - a no-fee Registered Retirement Income Fund (RRIF)that is designed specifically for holding the Canada Savings Bond directly in it. Also this product is no longer offered to new customers.

C)Payroll Savings Plans - Employers can provide employees with this plan during sale periods. Employees choose the much they would like deducted off their paychecks and it is automatically saved until when the employee would like to withdraw.

Canadian citizen looking to invest their money here is a big opportunity.