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Old 10-05-2011, 10:35 PM   #1
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Canada Savings Bonds vs RRSP

Just finished school and planning to invest.

Which one is better Canada Savings Bonds or RRSP?

Whats the difference between this two?

Also for example starting from now I invest $300 per month I dont see the bigger picture as interest is low.

Canada Savings Bonds
Series 128 (1 Nov. 2011)
Year 1: 0.50%

Canada Premium Bonds
Series 78* (1 Nov. 2011)
Year 1: 1.00%
Year 2: 1.20%
Year 3: 1.40%
*Annual compound rate of 1.19% if held for 3 years.

Am I missing something?



Thanks for all your help.....
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Last edited by dasuperstar; 10-05-2011 at 10:43 PM.
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Old 10-05-2011, 10:45 PM   #2
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An RRSP (Registered Retirement Savings Plan) is an account. You can have savings accounts, guaranteed investment certificates (GICs), bonds, mortgage loans, mutual funds, income trusts, corporate shares (stocks), foreign currency and labour-sponsored funds in it. A Canada Savings Bond (CSBs) is an investment instrument offered by the Government. So it's tough to say which one is better based on the fact that you aren't comparing two instruments.

Canada Savings Bond - Wikipedia, the free encyclopedia
Registered Retirement Savings Plan - Wikipedia, the free encyclopedia

You should go see a financial advisor and/or do some self-educating on investments first.
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Old 10-05-2011, 10:54 PM   #3
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Originally Posted by shawnly1000 View Post
An RRSP (Registered Retirement Savings Plan) is an account. You can have savings accounts, guaranteed investment certificates (GICs), bonds, mortgage loans, mutual funds, income trusts, corporate shares (stocks), foreign currency and labour-sponsored funds in it. A Canada Savings Bond (CSBs) is an investment instrument offered by the Government. So it's tough to say which one is better based on the fact that you aren't comparing two instruments.

Canada Savings Bond - Wikipedia, the free encyclopedia
Registered Retirement Savings Plan - Wikipedia, the free encyclopedia

You should go see a financial advisor and/or do some self-educating on investments first.
I will definitely do that..... but cbs is worth investing?
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Old 10-05-2011, 11:22 PM   #4
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^What is your risk profile and what is your investment goal? With CSB you get guaranteed principal + guaranteed interest, but generates VERY low yield. So it depends what your plans with your savings are for. Keep in mind, with interest rate of ~1%, once you factor in inflation, you're pretty much getting 0 return, if not negative return
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Old 10-09-2011, 08:26 PM   #5
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if u put over 50k for more than 4 years you get more than 4% a year
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Old 10-09-2011, 10:00 PM   #6
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if u put over 50k for more than 4 years you get more than 4% a year
What?
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Old 10-09-2011, 10:18 PM   #7
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interest rate = 1%
inflation = 2% (Inflation - Bank of Canada)

real rate of return = -1

find something that will return you 2.1% or higher.
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Old 10-10-2011, 01:06 AM   #8
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What?
the more money you put in canadian savings bond the higher interest rate you receive

$50 000 locked in for 3 or more years will get you a 4% interest rate
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Old 10-10-2011, 11:12 AM   #9
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GICs vs Bonds MoneySense

Both GIC's and bonds seem to be pretty low return.. you may be better off doing GIC's to keep up with inflation I'd think.

more videos:

*** http://www.khanacademy.org/#finance
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Old 11-05-2011, 04:12 AM   #10
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^hey but at least canada bonds are guaranteed cos from the gov't...

GICs as my ex insurance coworker says is not guaranteed technically cos if banks go bankrupt your GICs are toast haha
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Old 11-05-2011, 08:20 AM   #11
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well... govt bonds could be bad too if you live in greece/italy/ maybe usa!
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Old 11-06-2011, 06:07 PM   #12
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^hey but at least canada bonds are guaranteed cos from the gov't...

GICs as my ex insurance coworker says is not guaranteed technically cos if banks go bankrupt your GICs are toast haha


Not at credit unions they are fully insured for unlimited deposit amounts!

Credit unions > banks!
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Old 11-06-2011, 09:03 PM   #13
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^^^this
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