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Canada Disability Savings Bond (CDSB)

August 17, 2013

The government of Canada offers financial support to people with disabilities who earn low incomes. This is through a savings bond. The Canada Disability Savings Bond (CDSB) can result in up to $1,000 of annual contributions to an RDSP beneficiary. This is dependent on his or her family’s net income.


The CDSB is another piece of the RDSP puzzle. It is one more way the government of Canada offers financial support to people with disabilities. Learn more about how the bond works, who is eligible to receive this free money, and how to apply.

How Does CDSB Work?

Unlike the Canada Disability Savings Grant (CDSG), the CDSB does not require the beneficiary to contribute money. The government will add up to $1000 funds to the RDSP of a qualified person. This bond does not operate on the contribution match system. Instead, once qualified for the Disability Tax Credit, RDSP, and CDSB, the government decides how much the bond will distribute to an individual’s RDSP.

It is possible to receive up to $1,000 per year and $20,000 in a lifetime. Like the CDSG, these benefits can only be collected until age 49, at the end of that calendar year. In addition, the “Carry-forward Measure” applies to the savings bond. Back-payments up to 10 years prior (or to 2008 when RDSP was established) may be added.

Who is Eligible for CDSB?

A person living with a disability may be eligible to qualify for the Canada Disability Savings Bond if he or she is:

– Under 49 years of age.
– A Canadian resident.
– Has a social insurance number.
– Receives Disability Tax Credits.
– Reports a family income under $43,561. (This number changes annually.)

Being Considered for the CDSB

In addition to receiving the Disability Tax Credit (DTC) and having an RDSP, it will be necessary to fill out a form and contact the financial organization that hosts the beneficiary’s RDSP.

Many people with disabilities earn low incomes. As a result, they qualify to earn up to $20,000 dollars in a lifetime through the Canada Disability Savings Bond. In addition, those who qualify for the Disability Tax Credit may be able to receive annual tax savings and up to $40,000 in retroactive payments.

Not enough people know about the Disability Tax Credit, RDSP, or CDSB. The first step in learning more about the financial support available through government programs is to contact benefit professionals who can answer questions and begin the DTC application process.

Successfully applying for the Disability Tax Credit is the first step in accessing other savings programs offered by the government of Canada. To ensure a successful filing of the T2201 form, contact the National Benefit Authority. The NBA is the largest benefit agency serving people with disabilities throughout Canada. With a trusted approach, they can deliver the most financial relief to a person living with a disability.

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