Canada Savings Bonds Stay

The federal government says it won't phase out its Canada Savings Bonds program, which has helped Canadians build nest eggs since 1946, despite a consultant's report that says the move could save $650 million.

Finance Minister Ralph Goodale says the program will be reviewed and revamped.

The federal government hired Cap Gemini Ernst & Young to assess the performance of the bond program, which is a key part of Ottawa's retail debt program.

When the program was introduced after the Second World War, one major goal was to provide the government with money to finance its debt while allowing Canadians to save money in a secure investment.

More than 3.5 million Canadians still hold Canada Savings Bond products, though in recent years their popularity has dropped along with the interest rates offered on them.

In 2003, investors held CSBs worth $22 billion, compared to $470 billion in mutual funds and about $400 billion in personal bank deposits.