Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs) are considered lower-risk investments because they're backed by the Canadian government. For this reason, savings bonds have a relatively low return compared to other investments. And they may not keep pace with inflation.
Other things to consider
- You can only buy savings bonds at certain times of the year.
- The interest you earn on a savings bond will be fully taxed if you hold it outside of a registered account. Learn more about how investments are taxed.
- You may pay a penalty or lose interest earned if you cash in a savings bond early.
Caution
Because savings bonds are lower risk, they have a relatively low return compared to other investments. And they may not keep pace with inflation.