Canadian Government Bonds Review

Canadian Government Bonds

Canadian government bonds come in a wide range and number of different types. To be eligible to purchase bonds offered by the Canadian government you must be a citizen of Canada, unlike United States savings bonds which do not have any citizenship requirements. One type of bond offered by Canada is a savings bond which can be turned it at any time at all, without any restrictions even before the bond maturity date has been reached. Canadian government bonds are also available as savings bonds which can only be turned in on the purchase anniversary date each year. Many Canadian citizens purchase these bonds as gifts.

Investing in government bonds can be an excellent choice, for conservative investors especially. The chance of Canada defaulting and not making the bond payment is almost zero, so there is not a lot of risk involved. Canadian government bonds can be found with a fixed rate, with an inflation adjusted rate, and even with compounding interest. Premium government bonds offer better interest rates, and you will find both long and short term government bonds to choose from. Many investors can see a return of around five percent with almost no risk, which may be conservative to some but is nothing to ignore.

There are many types of Canadian government bonds to choose from, each with different benefits and advantages. If you are a citizen of Canada then these bonds can be an excellent choice, and are comparable to US Treasury bills where risk is concerned. If you are not knowledgeable in this area then it may be wise to seek professional advice before purchasing any bonds, to make sure you get the best bond for your investment capital and goals. Some may have restrictions on when they can be cashed in, while others may have varying rates and terms. Careful comparisons can help you choose the right government bonds for your situation.