Canada: The end of the Canada Savings Bond

The Canada Savings Bond (CSB), a debenture product offered by the Bank of Canada that featured a guaranteed minimum interest rate, was discontinued at the end of March 2017 after seeing a gradual decline in popularity. The product had been available to the public since 1946 and used to be one of the most popular savings vehicles in Canada, with the account reaching its peak in 1987 when it was offering attractive yields of 9%.

Several factors contributed to the demise of the CSB, including the high costs of operating the accounts, the introduction of mobile technology giving investors the ability to quickly buy and sell investments on their mobile devices, and competition from new savings products such as high-interest savings accounts and exchange-traded funds.

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