Government of Canada Treasury Bills offer attractive interest rates and are fully guaranteed by the federal government. They are available for terms of one month to one year and are essentially risk-free if held to maturity. In fact, they are considered the safest Canadian investment available with a term under one year. 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 T-Bills are fully marketable and can be sold at market value at any time. Government of Canada T-Bills are available denominated in U.S. as well as Canadian dollars, and both are considered Canadian content within your RSP/RRIF. Common CharacteristicsDollars to Invest/Time HorizonMinimum investment (at face value) is $5,000 for three months to one year, $25,000 for one or two months, available in Canadian and U.S. dollars.Risk/ReturnFully 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 for short-term investments.LiquidityHighly liquid; may be sold at any time, with settlement within one business day.IncomeEarnings are distributed at maturity.Key Benefits- Safest Canadian investments available in Canada, regardless of the size of the investment.
- Fully guaranteed principal and return if held to maturity.
- High degree of liquidity.
- Low minimum investment required.
- RSP/RRIF eligible.
- U.S. dollar-denominated investments are considered Canadian content for RSP purposes.
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