U.S. Savings Bonds
Categories: Bonds
See: Savings Bond Plan.
A savings bond is...kind of like charity. Charity...because interest rates on savings bonds are exceptionally low, even by government standards.
There was an era in America when taxpayers happily and willingly loaned money to Uncle Sam, and were happy to do so, because they had great faith and trust that the people we elected were, in fact, decent, honest, hard-working representatives who had the interests of the nation placed far ahead of their own personal gain. Think: the greatest generation.
So savings bonds used to be a standard birthday present for young people. Kind of like the Cross pens that Jewish boys get at their bar mitzvah. Grandmothers, after slathering in a bathtub of angry perfume, loved handing the $50 savings bond envelope to their college-bound progeny.
Savings bonds are issued by the U.S. treasury, and have no stated maturity date. Instead, what happens is that the savings bond just pays interest for some period of time, like...say, 10 years, and at the end of that decade, it simply stops paying interest. You can cash in the bond at that time, or just let it ride, essentially renting money to the gov for free.
And yeah...you don’t want to confuse a savings bond with James Bond, who, uh…needs no saving.
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Finance: What is a Savings Bond?2 Views
finance a la Shmoop what is a savings bond well it's kind of like charity
charity because interest rates on savings bonds are exceptionally low even
by government standards well there was an era in America when taxpayers happily
and willingly loaned money to Uncle Sam and were happy to do so because they had
great faith and trust that the people we elected were in fact decent honest [old government photos]
hard-working representatives who had the interests of the nation placed far ahead
of their own personal gain it was the era of Jimmy Stewart and a whole bunch [photo of Jimmy Stewart]
of others you should think the greatest generation yeah we know even a pretty [picture of John Wayne]
good generation check Congress for details so savings bonds used to be a
standard birthday present for young people kind of like the cross pin that [kid's birthday party]
nice Jewish boys would get at their bar mitzvahs grandmother's after slathering [boy's mar mitzvah]
in a bathtub of angry perfume loved handing the $50 savings bond envelope to [woman in hot bath]
their college-bound progeny well savings bonds are issued by the US
Treasury and have no stated maturity date instead what happens is that the
savings bond welljust pays the interest for some
period of time like say a decade and at the end of that 10 years while it simply
stops paying interest you can cash in the bond at that time or just let it
ride essentially renting money to the Gov for free and yeah you don't want to
confuse a savings bond with this bond yeah who needs no safety