Are Canada Savings Bonds still available?

Canada Savings Bonds were retired after the March 2017 budget and bonds that existed have matured as of December 2021. However, the Government encourages savings and capital formation by allowing tax deductions/tax-free investing through the Registered Retirement Savings Plan (RRSP) or by investing using the Tax-Free Savings Account (TFSA).

Can you lose money investing in bonds?

Bonds do not lose money based on market fluctuations. It is important to keep in mind a couple of essential risks – interest rate and inflation risk. If the underlying interest rates increase, the investor essentially has locked in a guaranteed rate and will not benefit from this bump in short-term rates. Secondly, if inflation picks up, the investor will lose on account of a decline in the purchasing power as the fixed return won’t keep up with the underlying inflation. These are ways in which a guaranteed income product can lose money.