Canada Savings Bond Payroll Savings Program

[brokendude]

I have attempted to check with my unit clerks, but they have no answers and are quite literally no help at all.  I would like to purchase Canada Savings Bonds, but apparently now there is a requirement to enroll online in a payroll savings program.  In order to purchase the bonds, an organization id & employee id are required.  I could not get either of these from anyone.  It was as if I was speaking in an alien language to them.  Total waste of time.  Can anyone help?

 

[George Wallace]

Canada Savings Bonds are not that great an investment anymore.  I am sure that you could find better plans that give you a better rate of return, such as the Tax Free Savings Accounts. 

Perhaps visit with a SISIP financial adviser to get better options.

 

[jollyjacktar]

Not only that, the Lieberals are going to kill it off as the numbers of clients have been steadily dropping for some years now.  CSB's are no longer relevant in today's market with the majority of Canadians.

 

[Sigs Pig]

I have attempted to check with my unit clerks, but they have no answers and are quite literally no help at all.  I would like to purchase Canada Savings Bonds, but apparently now there is a requirement to enroll online in a payroll savings program.  In order to purchase the bonds, an organization id & employee id are required.  I could not get either of these from anyone.  It was as if I was speaking in an alien language to them.  Total waste of time.  Can anyone help?

You say you want to purchase CSBs, how? If you have the cash available, you buy their Premium bond at any/most financial institutions, or even by phone from CSB, but how that works I do not know. The payroll way has to be offered by the employer and I have never seen CAF offer that one. Phone CSB and ask if the Feds can do it.
As for the interest rate, the payroll CSBs are comparable to any other GIC, TFSA or similar (I socked away over $50k this way with my civy employer), it is 0.5% and has been there for years. I just checked the Royal Bank "Enhanced Savings" account and they give a whooping 0.000% for <$5k and 0.001% up to $10k!
Now the Premium bond, which you lay out all monies to buy it, is sitting at 0.8%; 0.9% and year three gives you 1.0%.... not shabby at all and cashable "anytime."

So in the end, it is the continued contributions to any plan that will add up, but you may pay taxes on the interest! That is why you utilize your TFSA room to the max, they usually have a good rate and are tax free. But be warned with the TFSA, I think ALL banks will charge you $50 to remove any of the $$ out of that account.

I have been using Tangerine lately, they seem good if you don't mind doing most of the work online... so far I have been given $100 to open accounts with them.

Stay cool

 

[George Wallace]

Well Sigs Pig, Canada Savings Bonds were a staple at one time for members to put away some savings.  They worked the same way as any other Pay Allotment would, with an fixed period of time set.  A lot of people, however, were not money wize and cashed in their Canada Savings Bond as soon as they got it, after paying full cost and approx 12% more to get it.....For $100 Bond, you would have paid around $112 through your allotment.  Cashing it in immediately for $100 was foolishness on their part.  Today, the interest offered on CSBs is so low, they are not worth the effort. 

I have never heard of a $50 charge to cash in a TFSA.  If you know the name of the Bank or institution that does, let us know. 

I know that my TFSAs at TD Canada Trust can be invested in a wide variety of options.  Perhaps shopping around would be in order.

 

[Sigs Pig]

I have never heard of a $50 charge to cash in a TFSA.  If you know the name of the Bank or institution that does, let us know. 

I know that my TFSAs at TD Canada Trust can be invested in a wide variety of options.  Perhaps shopping around would be in order.

I may stand corrected (to a point). We had moved our $$$ around when I retired and what it might be is a transfer fee.
As for "paying" for CSB when I did my payroll deduction, there is a charge for that which I was able to deduct at tax time so the end result is nil.

 

[Flavus101]

The credit union I use has never charged for money to be moved out of the TFSA.

 

[brokendude]

So....contacted director of Mil Pay.  CAF does have an organization ID number and is part of the CSB Online payroll program.  I registered an account, and purchased my CSB`s.  This is now officially the ONLY way to purchase Canada Savings Bonds.  Figured it all out myself.  As usual.  No thanks to the CAF or unit clerks.

 

[CountDC]

CSB is available through CAG as a payroll deduction but has nothing to do with the clerks other than see it come off your pay so no surprise they couldn't help.  Use to be that the bases had someone assigned as CSB advisor or some title every year around the time they were available to start them that would complete the paperwork.  Also a canforgen? or something would be released advising they were now available.

Now if I could only figure out my account information.  Lost the paperwork to a household accident.

 

[Colin Parkinson]

I grew up on CSB’s like many here, but have given up on them, as they actually lose money due to their inability to keep up with inflation. I am guessing you are a very conservative/careful with money, been there. I lucked out with an ex-army friend who did financial planning who coaxed me into buying funds with a guaranteed return as a entry tool. Basically you leave the money for a ten year period and you get X% return. They are betting that they can use your money to get a far better return than what they are giving you. These do not pay out as well as th risker funds, but have a lot more comfort for the fiscally unaware. Thankfully my wife is OCD and loves to save money so she is always researching and checking. You can talk to your bank/credit union, but be aware they are under pressure to plug various products and wee bit of reading can arm you with some decent facts. If you are young and can find a way to finically plan now you will not regret it.