Government of Canada Bonds
Government of Canada Bonds offer attractive returns and are fully guaranteed by the federal government. They are available for terms of one to 30 years and like T-Bills, are essentially risk-free if held to maturity. They are considered the safest Canadian investment available with a term over one year. They pay a guaranteed, fixed level of interest income until maturity, at which time the full face value is repaid. Again, every penny of principal and interest is guaranteed by the Government of Canada, no matter how much you invest. Even if you normally hold your investments to maturity, it is nice to know that Government of Canada Bonds are fully marketable and can be sold at market value at any time. You may purchase Government of Canada Bonds denominated in U.S. as well as Canadian dollars; both are considered Canadian content within your RSP/RRIF.
Common Characteristics
Dollars to Invest/Time Horizon
Minimum investment (at face value) is $5,000 for Canadian dollar denominations and $25,000 for U.S. dollar denominations. Terms vary from one to 30 years.Risk/Return
Fully guaranteed by the Government of Canada. There is essentially no risk with any investment held to maturity--every aspect of the investment is guaranteed, regardless of the size of the investment. Competitive yields.Liquidity
May be sold at any time, with settlement within three business days.Income
A fixed level of interest (coupon) is paid semi-annually, and face value is returned at maturity.Key Benefits
- Safest Canadian investments available in Canada, regardless of the size of the investment.
- Fully guaranteed principal and interest if held to maturity.
- Provides guaranteed regular payments of income.
- Competitive yields.
- High degree of liquidity.
- Low minimum investment required.
- RSP/RRIF eligible.
- U.S. dollar-denominated investments are considered Canadian content for RSP purposes.
Non Registered fixed income investments
can be purchased from EasyLine telephone banking at 1-866-222-3456, through your local TD Canada Trust branch or from TD Waterhouse. Registered fixed income investments can be purchased from TD Waterhouse.
