What is a savings bond?
A savings bond is a certificate of debt issued by the government that guarantees payment of the original debt plus interest after a specified future date. Savings bonds can be purchased for a minimum of $50 and a maximum of $10,000. Series EE bonds are purchased at half of the face value, and Series I bonds are purchased at face value.
The savings bond is a form of Treasury bond issued by the United States government. There are several types of bonds currently in circulation, with the Series EE bonds being the usual bond type extended to an individual investor. Series I bonds are also available, while another form of the savings bond, the Series HH bonds, are no longer issued. All types of savings bonds realize a return on the investment assuming they are held until maturity. Bonds issued by the US government first came into being in the days of World War I. With no means of obtaining financing from other countries, the government turned to the citizenry and offered them a chance to purchase what were known as Liberty bonds. As the bonds began to mature after the war, refinancing the debt associated with the bonds became was necessary. Over time, the savings bond emerged as a very safe way to conservatively create a nest egg for retirement. Generally, the Series EE bond is what people think of when purchasing the bon
