Ontario Savings Bonds

Are Ontario Savings Bonds eligible for registered savings plans?

Yes. As noted in the Terms & Conditions, OSBs can be purchased and then placed into a self-directed Registered Savings Plan (e.g. Registered Retirement Savings Plan, Registered Education Savings Plan, Registered Retirement Income Fund, Differed Registered Savings Plan, etc.).

What are a bondholder's options when OSB RSPs mature?

As each series of OSBs mature, a bondholder has three options:

Invest the proceeds in another issue of Ontario Savings Bonds, if available – by sending the Registrar, Computershare, a Letter of Instruction prior to Maturity.
Transfer the proceeds to another RSP or registered plan – by sending the Registrar, Computershare, a T2033 transfer form from the RSP administrator prior to Maturity; or
Withdraw the funds and pay the tax owing on the amount withdrawn – by sending the Registrar, Computershare, a Letter of Instruction prior to Maturity.

Please note, in accordance with the Terms and Conditions of the OSB RSP, if notice is not provided before the Maturity Date of the bonds, the Trustee (i.e. Registrar) will reinvest the proceeds of the maturing OSBs in the new Variable-Rate Bond, if available.

What is the scale for withholding tax applicable to withdrawing from an OSB RSP?

The scale for withholding tax applicable to withdrawing from an OSB RSP is as follows:

ONTARIO
Up to $5,000	10%
$5,000.01 - $15,000	20%
$15,000.01 – and up	30%

Can an OSB RSP be used as a down payment for a first time home purchase? If so, what is the procedure?

Yes. An OSB RSP may be used as a down payment on a new home purchase. The bondholder must complete a Canada Revenue Agency T1036 form. The form can be obtained from a Financial Institution or a Canada Revenue Agency office. Processing of the T1036 form may take up to 10 days from the requested date.

Services Menu

Registered Plans

Email Subscription

Site Map

Other Links

Contacts