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Savings BondsSavings bonds are debt securities issued by the U.S. Department of the Treasury to pay for the U.S. government’s borrowing needs. Saving bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. There are several types of U.S. savings bonds:
U.S. savings bonds have tax advantages. You can defer federal taxes on the interest until you cash in the bond or stops paying interest at maturity. Savings bonds are also exempt from state and local taxes. Because savings bonds are registered with the U.S. Treasury’s Bureau of the Public Debt, you can get your bonds replaced if your bond is lost, stolen, or destroyed. For more information about savings bonds, visit the website of U.S. Department of Treasury's Bureau of the Public Debt. At its site, you can use its Savings Bond Calculator to help you make more informed investment decisions about savings bonds. The website also provides a section describing the different types of securities issued by the Treasury.
http://www.sec.gov/answers/savingsbond.htm
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