Canada Savings Bonds (CSB) to be retired?

[Reddog01 30280]

Gee I remember not that long ago that CSBs were a great way to save; especially as forced savings through payroll deductions. Purchases are down 85% since the late 1980s when it only took you 4-7 years to double your investment and it was safe with no risk. For obvious reasons I stopped buying them years ago as the interest rates plummeted. Rates are now about 0.70%.....

The government is thinking about retiring the program as it costs about 60 million to administer - not sure why it costs so much.

 

Anyone else use these in the past as an investment? Do you see the benefit of continuing to buy?

[GoinDown 3669]

CSBs have been a terrible idea for years. Any 'investment' instrument that pays you less than inflation is a complete dog. Better to spend your extra $s on escorts and at least get some bang for your buck !!!

[blacklabdog 3049]

The part of my portfolio I have in 'cash', I have in a money market fund and President Choice account which is over 0.7% and more liquid

 

 

CSB and keeping money under the mattress about the same especially since .7 is before tax

[Reddog01 30280]

For sure I agree that for less than 1% this is no way to park your money. It was purely for nostalgia reasons that I brought this up at all as CSBs were part of my life back in the day when I could double my investment over a few years.

 

I would be happy to find any investment/stock that I could do this with today!

[blacklabdog 3049]

Back then inflation was way higher. I do remember buying them as a teen in the Fall every year

[Guest *Ste***cque**]

I remember buying them 30+ years ago as part of a payroll savings plan at the office where I worked. It was convenient and the return was great. Sadly, I had very little extra money back then to save as I was just starting out and had rent, car and weekend beer expenses. :)

 

I haven't bought a CSB for ages. I agree, there isn't much point maintaining this idea as the return is so lousy. You're better off now signing up for a company RRSP plan that matches your annual contribution or setting up an automatic deduction for investing in dividend paying blue chip stocks.

 

I don't know of any investment nowadays that pays the kind of return CSB's gave in the 80's, maybe real estate in Vancouver, Toronto but who has that kind of money for a hefty deposit? Now that I'm trying to max my savings for retirement, there aren't a lot of investments around with good returns.