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What Is a U.S. Savings Bond?

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    Part of the video series: Finance & Investment Tips

    From Quick Guide: Savings and Loan Guide

    Summary: U.S. savings bonds are simple financial savings instruments that can be purchased at a bank, which earn interest over a designated amount of time. Use U.S. savings bonds to earn interest as part of a savings strategy with tips from a registered financial consultant in this free video on finance and investment.

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    By Patrick Munro
    eHow Presenter

    Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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    Video Transcript

    "This is financial advisor Patrick Munro discussing what is a US savings bond. A US savings bond is a very basic form of a savings instrument that's available to all Americans, usually, at your local bank. Really, it's an IOU, whereby you put up money of yours and put it on deposit, by the United States Treasury, in return they'll give you a bond, which you'll pay a future rate of interest over a longer period of time. Usually, you get a higher rate of interest, if you're willing to leave your money with the government over an ever larger period of time. They code these bonds with letters, Double A bonds, B class bonds, C double E bonds. They have various colors as well, it's really quite a historical way of saving money, it's been around for a long time. US savings bonds are being eclipsed now by more sophisticated savings instruments, such as stocks, mutual funds and things of that nature, bu there's still a good number of folks that use a US savings bonds as a part of their saving strategy. This is financial advisor Patrick Munro, discussing what are US savings bonds."

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