Mint Money Knowledge Center: What are savings bonds?

In 1941, the United States government realized that it would start racking up a sizeable debt for operations in World War II, so it changed its bond issuing program to the war bonds program. These were ways that people could invest in the war and then realize a return when the war was over. After World War II, the government changed the name of the program back to savings bonds and has since been offering people a safe way to invest money. What are savings bonds


What Is A Savings Bond?

A savings bond is a financial investment you purchase from the United States Federal Government. There is a maturity date on the bond and a face value. The maturity date is the date when the bond becomes redeemable and the face value is how much it can be redeemed for. As an example, you could buy a $50 face value savings bond right now for $25 and when it reaches the maturity date, that $25 you invested doubles into the $50 face value.

Technology Takes Over

For years, the federal government used elaborately printed savings bonds as a way of giving pride of ownership in the investment. But as the Internet has become more popular, the government has given up on the elaborate paper bonds and now sells all savings bonds online. Consumers should always be sure that they are buying genuine United States savings bonds when they buy online to avoid being cheated by criminals.

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