What happened to Canada Savings Bonds?

Canada Savings Bonds (CSBs) were discontinued in November 2017 after the federal government decided they were no longer a cost-effective way to borrow. Outstanding bonds were redeemed by 2021. CSBs had been available since 1946 and were once the most popular savings product in Canada.

What is the best replacement for Canada Savings Bonds?

The closest replacements are GICs (guaranteed, CDIC-insured, similar risk profile), Government of Canada bonds (you can buy them through a brokerage), and Treasury bills. For most Canadians, a GIC from an online bank (EQ Bank, Oaken Financial) or a high-interest savings account offers comparable safety with better returns.

Can you still buy government bonds in Canada?

You cannot buy Canada Savings Bonds anymore (discontinued), but you can buy Government of Canada marketable bonds and Treasury bills through a brokerage account. You can also get government bond exposure through bond ETFs like ZAG, VAB, or XBB, which hold diversified portfolios of Canadian government and corporate bonds.

Canada Savings Bonds & Modern Alternatives

What Were Canada Savings Bonds?

Feature	Canada Savings Bonds (CSB)	Canada Premium Bonds (CPB)
Available	1946–2017	1998–2017
Redeemable	Anytime (cashable at face value + interest)	Once per year (on anniversary)
Interest rate	Variable (set annually by government)	Slightly higher than CSB
Minimum purchase	$100	$100
Maximum	$500,000 per person	$500,000 per person
Where to buy	Through employers (payroll), banks, or directly	Same as CSB
Risk	Zero — backed by Government of Canada	Zero — backed by Government of Canada
Why discontinued	Government found cheaper ways to borrow; declining popularity	Same

Historical CSB Interest Rates

Year	CSB Rate	Context
1981	19.5%	Peak interest rate era
1990	10.5%	Still high by modern standards
2000	5.25%	Moderate rates
2010	0.65%	Post-financial crisis lows
2015	0.50%	Near-zero rate era
2017	0.50%	Final year — discontinued

Modern Alternatives to Canada Savings Bonds

Alternative	Return (2026)	Risk	Liquidity	CDIC/Gov Backed	Best For
HISA	3.5–4.5%	None	Instant	CDIC insured	Emergency fund, short-term savings
GIC (1-year)	4.0–4.5%	None	Locked 1 year	CDIC insured	Money you won’t need for 1 year
GIC (5-year)	3.5–4.0%	None	Locked 5 years	CDIC insured	Longer-term guaranteed returns
Treasury bills	3.5–4.5%	None	3–12 months	Government backed	Low-risk short-term investment
Gov of Canada bonds	3.0–4.0%	Low (price fluctuates)	Sellable anytime	Government backed	Fixed income, government guarantee
Bond ETF (ZAG, VAB)	3.5–5.0% (yield)	Low-moderate	Instant (market)	Diversified bonds	Passive bond exposure
Money market ETF	4.0–4.5%	Very low	Instant (market)	Diversified short-term	Near-cash alternative

GICs: The Closest CSB Replacement

Why GICs Are the Best Alternative

CSB Feature	GIC Equivalent
Government-backed safety	CDIC insured up to $100K per institution
Guaranteed return	Fixed rate locked at purchase
Simple, no market risk	Same — principal guaranteed
Available at any bank	Same — available at all banks and credit unions
Payroll deduction	Not available (but auto-savings plans work similarly)

Best GIC Rates in Canada (2026)

Institution	1-Year	3-Year	5-Year
EQ Bank	~4.5%	~3.8%	~3.5%
Oaken Financial	~4.5%	~3.8%	~3.5%
Peoples Trust	~4.5%	~3.7%	~3.5%
Tangerine	~3.5%	~3.3%	~3.0%
Big banks (avg)	~3.5%	~3.0%	~3.0%

Government of Canada Bonds

How to Buy

Method	Description	Minimum
Through a brokerage	Buy on secondary market (Questrade, IBKR, TD)	1 bond (~$1,000 face value)
Bond ETF (ZAG, VAB, XBB)	Holds hundreds of government + corporate bonds	Price of 1 share (~$15–30)
Government of Canada T-bills	Buy through brokerage at auction or secondary market	$1,000

Bond ETFs with Government of Canada Exposure

ETF	Ticker	MER	Gov Bond %	Yield	Duration
BMO Aggregate Bond Index	ZAG	0.09%	~35%	~3.5%	~7 years
Vanguard Canadian Aggregate Bond	VAB	0.09%	~35%	~3.5%	~7 years
iShares Core Canadian Universe Bond	XBB	0.10%	~35%	~3.5%	~7 years
iShares Canadian Government Bond	XGB	0.39%	~100%	~3.3%	~8 years
BMO Government Bond Index	ZGB	0.17%	~100%	~3.3%	~8 years

Treasury Bills

Feature	Details
Issuer	Government of Canada
Terms	3 months, 6 months, 12 months
How they work	Bought at a discount, mature at face value (the difference is your return)
Current yield	~3.5–4.5% (varies with Bank of Canada rate)
Risk	Zero — full faith of Canadian government
How to buy	Through a brokerage (Questrade, IBKR, bank brokerage)
Minimum	$1,000 (face value)

Comparing Safe Investment Options

Feature	HISA	GIC	T-Bill	Gov Bond	Bond ETF
Guaranteed return	✅	✅	✅	✅ (if held to maturity)	❌ (price can fluctuate)
Liquidity	Instant	Locked	Hold to maturity	Sellable (price fluctuates)	Instant
Interest rate risk	Low	None	None	Moderate	Moderate
CDIC insured	✅	✅	N/A (gov-backed)	N/A (gov-backed)	❌
In TFSA	✅	✅	✅ (via brokerage)	✅	✅
Ease of use	Very easy	Easy	Moderate	Moderate	Easy

What to Choose Based on Your Needs

Need	Best Option
Emergency fund (instant access)	HISA (EQ Bank, Wealthsimple Cash)
Known expense in 1 year	1-year GIC
Saving for 2–5 years (no risk)	GIC ladder (stagger 1–5 year terms)
Retirement fixed income	Bond ETF (ZAG, VAB) or GIC ladder
Government guarantee specifically	T-bills or Government of Canada bonds
Earning interest on idle cash	Money market ETF (CASH, CSAV)