3.2.3 Government savings bonds
- Government savings bonds are guaranteed investments issued by the federal or provincial governments. They usually pay a fixed rate of interest for a fixed period of time.
- The Government of Canada sells Canada Savings Bonds and Canada Premium Bonds.
- Provincial governments also offer high quality bonds.
- The government that issues the bond guarantees the full value of the bond and the interest, no matter how much you invest.
- You can cash in government savings bonds with no charge at most financial institutions. Some can be cashed in at any time, but you may lose any interest earned if you cash them in before their due date.
- Most financial institutions sell government savings bonds, but they may be available only for a few months of the year. Many employers also have an automatic payroll deduction plan to help their employees buy government savings bonds.
- For full details, search for the savings bond website of your federal or provincial government (e.g., "Canada savings bond" or "Quebec savings bond").
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