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Originally Posted by navillusc  I know you meant well,  and I appreciate you and commend you for the idea, but for me...  Yikes !!! No way I would ever do this...sorry...    (I think that about covers my emotional range...and attention span !  ) No offense meant...all in good fun! Put the emergency money under your complete control,regardless of where it comes from...not "on account" as a "credit" ... if you want my reasons for why I wouldn't do it, you'll only need to ask...  lol
Shuttin' up now ... 
So, about those Canadian bonds...in the USA, bonds take much longer to mature. If you tried to cash a $25 bond a year later, I doubt you'd anywhere close to face value and interest would be pure fantasy.  Even years after they have matured, interest is still negligible. My kids had these from when they were babies. The bonds were more than matured and only were worth slightly more than face value, and they were such a pain to cash than one kid almost didn't. If I correctly recall, the banks would only deposit them into a checking account...not cash them outright, and the kid didn't have a checking account when he first went to college but he'd thought he could count on the money 'cuz we told him we could! I do think it's very cool that you get face value plus interest one year later, and can "spend" them at a "retail" business. I don't know how we could get Canadian bonds here...lol |
First that is fact you do get face value plus full one year interest on CSB's if you keep them for one year. They are issued and fully backed by the Government of Canada. If you cash in early ie prior one year; you get your full face value plus some portion of the interest earned until the month you cash in.
Bonds have different maturity dates, earning differing rates of interest, accrued at different time periods. But once the maturity date of a bond has come, you better invest those funds in another commodity otherwise you won't earn any money on those funds.
I never said that CSB's could be spent at any retail establishment. What I said in a Medical Emergency situation, at a Veterinary Hospital after banks have closed etc. etc; if you had CSB bearer bonds in hand, critical emergency care would NOT be denied to you. If you had the bonds in hand at any of our National banks during the day, they could be borrowed or in some cases cashed in.
Go to an International Securities broker if you wish to purchase CSB;s; I have it on good authority even Americans can purchase these.