Banks, trust companies, credit unions, investment firms and the Canadian government all sell Canada Savings Bonds and Canada Premium Bonds, states GetSmarterAboutMoney.ca. CSBs and CPBs are only available during certain times of the year. The Canada Savings Bonds Program website, at CSB.GC.ca, lists program details and allows the purchase of bonds online.
Investors must invest at least $100 to buy compound-interest bonds and $300 for regular-interest bonds, states GetSmarterAboutMoney.ca. CSBs and CPBs are redeemable at any time. Note that for CPBs, interest is calculated only to the most recent anniversary date of the bond. Interest on CSBs is calculated to date.
Investors may also buy CSBs and CPBs for inclusion in other savings plans, such as Tax Free Savings Accounts or Registered Retirement Savings Accounts, explains GetSmarterAboutMoney.ca. Most financial institutions and investment firms offer these types of investment accounts.
The Canadian government sells almost all CSBs and CPBs through payroll reduction programs, creating a simple form of forced saving, as of 2015, reports the CBC. The Canadian Savings Bonds Program was popular during the mid-20th century when interest rates were much higher. However, with interest rates now at 1 percent, many experts feel that CSBs and CPBs offer little to no advantages even compared to basic savings accounts. Additionally, retail investors now have much more diverse investment options than during the heyday of the Canadian Savings Bonds Program, reports the National Post.