Savings bonds
A savings bond is a loan to a government that is secured by the general credit and taxation powers of the government. They are usually offered for sale at certain times of the year directly from the issuing government (or agency). The Bank of Canada offered Canada Savings Bonds up to November 2017, and only one province still offers them.
Canada Savings Bonds
In the 2017 federal budget, the Government of Canada announced it would discontinue the sale of Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs) in November 2017.[1]. The government cited the "overall decline in sales, the access to alternative investments vehicles for consumers and the administration and management costs of the program" as causes for the decision.
As of December 2021, all Canada Savings Bonds and Canada Premium Bonds have reached maturity and stopped earning interest.[2]
Provincial savings bonds
| Province | Main Site |
|---|---|
| Alberta | Alberta Capital Bonds and Alberta Savings Certificates
|
| British Columbia | BC Savings Bonds
|
| Manitoba | Manitoba Builder Bonds and Hydro Bonds
|
| New Brunswick | Not offered |
| Newfoundland & Labrador | Not offered |
| Nova Scotia | Not offered |
| Ontario | Ontario Savings Bonds
|
| Prince Edwards Island | Not offered |
| Quebec | Épargne Placements Québec |
| Saskatchewan | Saskatchewan Savings Bonds
|
Alternatives
There are many alternatives to savings bonds, depending on when you want access to the money. This includes:
- Conventional bonds
- Guaranteed Investment Certificates
- High-interest savings accounts
- Money market funds
References
- ^ Government of Canada, Important announcement about the Canada Savings Bonds Program, March 22, 2017, viewed December 4, 2018
- ^ Government of Canada, Canada Savings Bonds Program, viewed June 4, 2023.
- ^ British Columbia Ministry of Finance, viewed July 26, 2012.
- ^ Manitoba Hydro, Manitoba HydroBonds news, viewed December 4, 2018.
- ^ Wikipedia, Saskatchewan Savings Bond
