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Savings Bonds:
Lend Yourself Low-Risk Benefits
When you buy a US savings bond, you are basically loaning money
to the Federal Government that will earn interest; your principal
is paid back to you on a set date.
The U.S. Treasury sells fixed-principal and inflation-indexed notes
and bonds. Both types pay interest twice a year. The principal value
of inflation-indexed securities, however, is adjusted periodically
to reflect inflation.
Treasury securities are considered very safe from credit risk because
they are backed by the full faith and credit of the U.S. government.
Penalities may or may not apply for early withdrawl.
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