Savings Bond

[SAY-vings bond]

What is the definition of Savings Bond?

A savings bond is a debt security issued by the U.S. government, available in denominations ranging from $50 to $10,000, designed to provide a safe investment option where interest accrues and the bond is redeemable for its face value at maturity.

Using Savings Bond in an Example

A family decides to invest in a $1,000 U.S. savings bond for their child's education. The bond will accrue interest over time, and upon maturity, it can be redeemed to help fund the child's college expenses.

Using Savings Bond in a sentence

I purchased a savings bond as a gift for my niece's high school graduation, knowing it would be a secure investment for her future.

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