Canada Savings Bonds: Penny for Your Thoughts
Finance Minister Bill Morneau is looking to hear from Canadians about whether Ottawa should continue the 70-year old Canada Savings Bonds program. According to the Globe and Mail, the value of the bonds has fallen dramatically from $55-billion in 1987 to $6-billion in 2015.
The official history of the Canada Savings Bond (the “Bond”) program began when the bonds were introduced as War Savings Certificates and Victory Bonds in order to fund Canada’s involvement in WWI and WWII. The Bond was launched with its current name in 1946 along with the original Payroll Program. The Bonds were purchased through payroll deductions, and up to 16,000 employers participated in this plan in 1946.
In 1998, a similar product known as the Canada Premium Bond was introduced with a higher interest rate, and the feature of being redeemable once a year.
In their present form, the Bonds are offered exclusively through the Payroll Savings Program, while the Canada Premium Bond is available through financial institutions, dealers and by phone.
The Bond is generally described as a safe and secure savings product. For more information about this Government of Canada program please visit www.csb.gc.ca
Thanks for reading and have a safe and secure weekend.