Ottawa – The Government of Canada now has the power to remove legal tender status from bank notes—something it could not do before. Effective January 1, 2021, the Government will remove that designation from certain bank notes that are no longer being produced—the $1, $2, $25, $500 and $1,000 notes— the final step to fully removing them as transactional notes in Canada. This initiative is supported by the Bank of Canada.
For collectors, it’s not a big deal.. with one caveat. After 2021, you can’t use them for any transaction.
For history buffs, yes, there was a time when we had $1, $2, $25, $500 and $1,000 notes.
If you wish to redeem your bank notes, the simplest way is to bring them to your financial institution. You can also send them to the Bank of Canada to redeem their value. Or, you can always decide to keep your notes.