U.S. Savings Bonds
 |
Definition of 'U.S. Savings Bonds'A U.S. government savings bond that offers a fixed rate of interest over a fixed period of time. Many people find these bonds attractive because they are not subject to state or local income taxes. These bonds cannot be easily transferred and are non-negotiable. |
 |
Investopedia explains 'U.S. Savings Bonds'U.S. savings bonds are one of the safest types of investments because they are endorsed by the federal government and, therefore, are virtually risk free. Although these bonds do not earn much interest compared to the stock market, they do offer a less volatile source of income. |
Related Definitions
Articles Of Interest
-
The Advantages Of Bonds
Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment. -
Savings Bonds For Income And Safety
Bonds offer undeniable benefits to investors, including safety and tax advantages. -
The Bond Market: A Look Back
Find out how fixed-income investments evolved in the past century and what it means today. -
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. -
Taxation Rules For Bond Investors
Several factors affect the taxable interest that must be reported. Learn more here. -
The Bear On Bonds
Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy. -
Are long-term U.S. government bonds risk-free?
For any debt obligation to be considered completely risk-free, investors must have full faith that the principal and interest will be paid in full and in a timely manner. The faith aspect of ... -
What's the difference between bills, notes and bonds?
Treasury bills (T-Bills), notes and bonds are marketable securities the U.S. government sells in order to pay off maturing debt and to raise the cash needed to run the federal government. ... -
How does an investor make money on bonds?
Bonds are part of the family of investments known as fixed-income securities. These securities are debt obligations, meaning one party is borrowing money from another party who expects to be ... -
Why do low interest rates cause investors to shy away from the bond market?
The lower rates that are found on bonds, especially government-backed bonds, are often not seen as enough by investors. This is the main driving force behind investors not wanting to invest in ...
Free Annual Reports