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Canada Savings Bond Formula:
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The Canada Savings Bond Calculator calculates the current value of Canada Savings Bonds using the compound interest formula. Note: Canada Savings Bonds were discontinued in 2017, but this calculator can be used for historical calculations or similar investment vehicles.
The calculator uses the compound interest formula:
Where:
Explanation: The formula calculates how an initial investment grows over time with compound interest, where interest earned each year is added to the principal for the next year's calculation.
Details: Canada Savings Bonds were popular government-backed savings instruments offered from 1946 to 2017. They provided Canadians with a safe, accessible way to save money while supporting government financing.
Tips: Enter the original purchase amount in CAD, the annual interest rate as a decimal (e.g., 0.05 for 5%), and the number of years the bond was held. All values must be positive numbers.
Q1: Are Canada Savings Bonds still available for purchase?
A: No, the Government of Canada stopped issuing Canada Savings Bonds in 2017. Existing bonds continue to earn interest until maturity.
Q2: What happens to existing Canada Savings Bonds?
A: Existing bonds continue to earn interest according to their original terms until they reach maturity. Bondholders can still redeem them.
Q3: How do I convert percentage rate to decimal?
A: Divide the percentage by 100. For example, 3.5% becomes 0.035 in decimal form.
Q4: Can this calculator be used for other investments?
A: Yes, the compound interest formula applies to many investment types including savings accounts, GICs, and other fixed-income securities.
Q5: What were the typical interest rates for Canada Savings Bonds?
A: Rates varied annually, typically ranging from 1-5% depending on economic conditions and bond terms.