06/17/2015 11:47 EDT | Updated 06/17/2016 01:12 EDT

Report recommends end to Canada Savings Bonds and Canada Premium Bonds

OTTAWA - A report prepared for the federal Finance Department by KPMG recommends the government wind down the program that sells Canada Savings Bonds and Canada Premium Bonds.The report says there is "no valid economic rationale" for the retail debt program that allows small investors to buy the government bonds in small amounts.If the government does not want to end the program, KPMG recommends a "no-frills version" that would eliminate the ability of Canadians to buy bonds through deductions from their paycheque.That option would allow the government to continue to provide Canadians with access to government bonds, while reducing costs related to the program.Low interest rates in recent years have reduced the appeal of Canada Savings Bonds compared with other similar investments.And because there are alternative investments that are insured by the Canadian Deposit Insurance Corp., the report says there would be virtually no market void unaddressed if the retail debt program were ended.