Savings Bond Plan


DEFINITION of 'Savings Bond Plan'

A program that allows employees to purchase U.S. savings bonds, such as the Series EE and Series I bonds, through payroll deductions. Money is set aside from each paycheck, and when enough money has accumulated, the company purchases a savings bond on the employee's behalf. Paper bonds are mailed directly to employees from the government, or are mailed to the employee's company for distribution. The plan may only be available to certain employees, such as those who work for the company full time.

BREAKING DOWN 'Savings Bond Plan'

Series EE paper bonds can be purchased in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 or $10,000 and can be purchased for half of their face value (i.e. a $10,000 EE bond costs $5,000). Series I bonds can be purchased in denominations of $50, $75, $100, $200, $500, $1,000 or $5,000 with a purchase price equal to the denomination. Bonds may be registered to a single owner, co-owners or a single owner with a single beneficiary who will receive the bond upon the bondholder's death.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Series I Bond

    A non-marketable, interest-bearing U.S. government savings bond ...
  3. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  5. Series EE Bond

    A non-marketable, interest-bearing U.S. government savings bond ...
  6. Series HH Bond

    A 20-year non-marketable U.S. government savings bond that pays ...
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