What is a Saving Bond?
US Savings Bonds are non-marketable securities, meaning you cannot buy or sell them unless you are an authorized issuing and redeeming agent designated by The US Treasury Department. They are also considered a registered security - which means that the person or persons named on the bond owns them.
Who Issues US Savings Bonds?
The US Treasury Department issues Savings Bonds.
Why people buy US Savings Bonds
There are several reasons why Americans buy Savings Bonds. Often safety is cited as a primary reason. Savings Bonds are backed by the full faith and credit of the United States Government, therefore, the principal and interest will never be lost due to changes in the financial markets.
Savings Bonds are free from ALL state and local income taxes. You can defer federal income taxes on the earnings if you wait until the bond reaches final maturity or when you cash it in. You can invest as little as $25 (and even smaller amounts from Payroll Deductions Plans), so it is an easy way for Americans to save. Some Savings Bonds are even entirely Federal Income Tax Free if used for Educational Purposes. Learn more about Education Bonds.
Where to buy US Savings Bonds
Currently there are three types of bonds available for purchase: Series EE, Series I, and the Patriot Bond (first issued on December 11, 2001 - the 3 month anniversary of the WTC/terrorist attacks) - following all the same rules and regulations of an EE bond. Read our "10 Things You Should Know About The Patriot Bond" Report for more about the Patriot Bond.
In the past, you could only purchase Savings Bonds at your local bank, but with the internet wave and the popularity of the digital age growing, Savings Bonds are only available via the Internet. Learn more about buying electronic savings bonds.
We hope this answered a few questions surrounding, "What is a savings bond?" If you would like to learn more about savings bonds, explore our website, check out the savingsbonds.com blog, or contact us with any questions that you may have.
Savings Bonds Currently Available for Purchase
Other Savings Bond Information