| Guaranteed Maturity Amount and Date |
Yes |
Yes |
Yes |
No, Bond ETF values and
returns fluctuate and are not guaranteed |
No, Bond fund values and
returns fluctuate and are not guaranteed |
| Ability To Sell |
Yes, at market value |
Yes, at market value (see
example .pdf 6k) |
No |
Yes, at daily Net Asset
Value |
Yes, at daily Net Asset
Value |
| Guaranteed By |
Issuer, generally Canada
or the Major Provinces, unlimited guarantee (corporate bonds not
generally recommended due to lack of diversification) |
Issuer, generally Canada
or the Major Provinces, unlimited guarantee (corporate bonds not
generally recommended due to lack of diversification) |
CDIC To $100,000 Per
Issuer (can be up to $600,000 in Self-directed RSP) |
Not guaranteed
|
Not guaranteed
Corporate (High Yield) Bond funds at least have benefit of
diversification
|
| Minimum Investment |
Generally $10,000 |
$5,000 of Maturity
Value, can be as little as $2,000 of initial investment value |
$500 |
Roughly $5,000 to be
cost effective |
$50 in payroll plans |
| RSP Eligible |
Yes |
Yes, Highly recommended
- ladder maturities for best results |
Yes |
Yes |
Yes |
| Tax Comments (Non RSP) |
Interest paid semi
annually, and taxable each year, try to buy at a discount, to
enhance after tax yield (need to reinvest if not using interest paid
out) |
Interest paid all at
maturity, but taxable each year. Not recommended for taxable
accounts due to unfunded tax liability |
Annual interest GICs
recommended in taxable accounts |
Complicated |
Interest calculated by
fund manager and taxable each year |
| Transferable |
Yes to another
self-directed RSP or investment account |
Yes to another
self-directed RSP or investment account |
No, only upon maturity |
Yes to another
self-directed RSP or investment account |
Yes to another
self-directed RSP or investment account |
| Fees (Commission) |
Built into yield (very
cost effective) |
Built into yield (very
cost effective) |
Built into yield (very
cost effective) |
Same commission as
buying a stock (expensive) |
MERs generally 1% to 2%
a year (expensive)* |
