What Are U.S. Savings Bonds?
When you buy a savings bond, you are lending money to the U.S. government in return for interest over time. These bonds are backed by the U.S. government, making them virtually risk-free from default.
Savings bonds earn interest that is typically compounded semiannually. The interest rate depends on the type of bond you buy and when it was issued. You can earn interest on savings bonds for up to 30 years.
The long-term nature and predictable returns make savings bonds a stable component of many investment portfolios, especially for goals such as education savings, retirement or other long-term financial planning.
Types of Savings Bonds
The U.S. Department of the Treasury currently issues two main types of savings bonds: Series EE and Series I bonds. Both types are low-risk investment options, but they have distinct features and benefits.
