What Are Treasury Bonds?
• Simply put a bond is a loan the government obtains from the general public. • A bond is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date, according to the American Heritage dictionary. • One of the advantages of investing in bonds is that you can be assured not to loose the money invested because it is highly unlikely for the government to default on the loan.
Treasury bonds are a low risk way of earning interest by financially investing in the U.S. Treasury for a specific amount of time, and cashing in when the bonds mature. Invest money safely with treasury bonds using tips from a registered financial consultant in this free video on finance and investment.
Video Transcript What Are Treasury Bonds? This financial advisor Patrick Munro discussing savings today and the one way to save and the best way to do it with the least amount of risk is to have the United States government as your savings partner. And what this is is an I.O.U. to the United States government in the form of a Treasury bond. The Treasury is the war chest of where the United States money is kept, tax revenues; and they actually have a treasury building in Washington D.C. It’s an old form of savings and the I.O.U. is issued in the form of a bond. You can get these bonds from your bank, from your post office as well. And really the American saver can give their money over to the United States government over a period as short as one month and a period, more often than not, of one year, two, three, five years or more. The bonds are said to mature and when they do, individuals will take them back to the financial institution and receive their reward or the interest rate that
