What Is a U.S. Savings Bond?
Video Transcript What Is a U.S. Savings Bond? This is financial advisor Patrick Munro discussing what is a US savings bond. A US savings bond is a very basic form of a savings instrument that’s available to all Americans, usually, at your local bank. Really, it’s an IOU, whereby you put up money of yours and put it on deposit, by the United States Treasury, in return they’ll give you a bond, which you’ll pay a future rate of interest over a longer period of time. Usually, you get a higher rate of interest, if you’re willing to leave your money with the government over an ever larger period of time. They code these bonds with letters, Double A bonds, B class bonds, C double E bonds. They have various colors as well, it’s really quite a historical way of saving money, it’s been around for a long time. US savings bonds are being eclipsed now by more sophisticated savings instruments, such as stocks, mutual funds and things of that nature, bu there’s still a good number of folks that use a
