U.S. Savings Bonds

AAA

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 TERMS
  1. U.S. Savings Bond Adjustment

    An adjustment in the current amount of reportable interest on ...
  2. Bond Valuation

    A technique for determining the fair value of a particular bond. ...
  3. Japanese Government Bond - JGB

    A bond issued by the government of Japan. The government pays ...
  4. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
Related Articles
  1. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  2. Savings Bonds For Income And Safety
    Bonds & Fixed Income

    Savings Bonds For Income And Safety

  3. The Bond Market: A Look Back
    Mutual Funds & ETFs

    The Bond Market: A Look Back

  4. Understanding Financial Liquidity
    Options & Futures

    Understanding Financial Liquidity

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center