A savings bond is a relatively safe investment that helps you accrue extra money for the future, especially if you can wait 20 years.
Savings bonds are guaranteed by the federal government and generate steady returns by earning interest monthly. One drawback is that their interest rates can be lower than some high-yield savings accounts or certificates of deposit (CDs).
“Safety is the primary benefit of buying either an I or EE savings bond,” said Anthony Chan, former chief economist at JPMorgan Chase. “These assets represent the safest securities that any investor can buy and are backed by the full faith and credit of the U.S. government.”
What is a savings bond?
A US savings bond is a bond available for purchase to help fund federal spending. By buying a bond, you’re lending money to the government. Then when you cash the bond, you get what you paid plus interest.
The federal government issues two…
