About Canadian Government Bonds
Canadian government bonds are considered Canada's safest investment, with a guarantee of the full principal and interest if they are held until their maturity. The rates are very competitive with other investments of its kind, making these bonds an attractive choice. It is, however, always a good idea to check with your own investment adviser about the current interest rate of these bonds and if they hold the best investment choice for you.
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Time Frame
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Canadian government bonds can be purchased in varying terms from one to 30 years. Yet they can be sold at any time, making them an attractive liquid asset if needed. The entire transaction takes only three business days.
Benefits
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Aside from the fact that these government bonds are considered the safest investment in Canada, they offer an ongoing income as the fixed interest is paid semi-annually, with the face value paid when the bond becomes mature. These bonds offer a competitive interest rate to other investments of their kind.
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Considerations
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There is a minimum amount required to purchase the Canadian government bonds: $5,000 Canadian dollars or $25,000 American dollars. The obvious larger investment needed by Americans will not make this as attractive as it is Canadians.
Warning
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For Americans, it is important to realize that other forign investment bonds may give a higher interest rate. However, it is important to make sure that the risk is minimal. The Canadian government bonds are virtually risk-free.
Expert Insight
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You can purchase Canadian government bonds from an investment broker where you can get expert insight. Or you can choose to buy them online. Most investment websites, such as Etrade, make it easy to purchase them online.
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