What is the Canadian savings bond?

Canadian savings bond is a tool for financial investment issued by the Canadian government and guarantees. These bonds are offered for sale every year from October to April. Energy -saving bonds in Canada can be purchased in different denominations and can be redeemed at any time of the year. These bonds are available in compound or regular interest and offer a guaranteed interest rate for one year from the purchase date. After the first year, the interest rate of this bond varies until the due date. Secured by the Canadian bank was first released in 1946 as a war bond of victory. Many investors consider these bonds a safer investment than mutual funds and shares due to the initial return on return and government warranty. The savings bond in Canada has been a popular investment for many years due to its flexibility and modest purchase price. These ties are often purchased as Christmas and birthday gifts for young children.

The sale of this savings bond has often decreased when interest rates decrease and investors turn to investment in higher revenues such as mutual funds and stocks. In 2004, the Canadian Ministry of Finance proposed that the program of savings bonds in Canada be terminated due to the major surplus of the government budget and low interest rates. The Canadian government has so far resisted efforts to interrupt bonds and the introduction of changes in the program to make investors more attractive. Although interest rates have been decreased in recent years, Canadians continue to depend on these savings bonds that form part of their investment portfolio. Recent studies suggest that more than 60% of Canadian citizens consider the Canadian savings bond to be their first investment choice.

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Canadian government also offers a premium bond Similar to the original Canadian savings link. Canadian premium bond, founded in 1998, maintains the same basic features of Canadian savings bond and offers a higher initial interest rate. The guaranteed interest rate of this bond increases in the first three years and then becomes variable up to maturity. Unlike the Canadian savings bond, this premium bond can only be applied to the anniversary of its original release date or during the next 30 -day period. Canadian premium bonds can also be available in different denominations and can be purchased with composition or regular interest rates.