Savings Bonds

Savings bonds are a type of investment offered by governments around the world as a means of raising funds. They are essentially a type of loan that the investor provides to the government, in exchange for a set interest rate paid over a predetermined period of time.

The bondholder receives regular interest payments until the bond matures, at which point the initial investment is returned in full. Savings bonds are typically considered low-risk investments, as they are issued by governments and are often backed by the full faith and credit of the government.

They can be purchased in different denominations and can be held until maturity or sold before maturity on the secondary market. The interest earned on savings bonds is generally exempt from state and local income taxes and may be exempt from federal income taxes depending on the circumstances.