U.S. Savings Bond


A registered, non-callable, non-transferable bond issued by the U.S. Government, and backed by its full faith and credit. Savings bonds differ from other Treasury securities in several ways. U.S. Savings Bonds are non-marketable, meaning that they cannot be bought and sold after they are purchased from the government; therefore, there is no secondary market for savings bonds. The tax benefits associated with savings bonds are significant. Like all treasury securities, they are exempt from state and local taxes, but in the specific case of U.S.
Savings Bonds, all federal taxes may be deferred until the bond is redeemed. Therefore, even though interest will accrue, no taxes will be due until that money can be accessed. Additionally, if the money received at redemption is used to pay tuition expenses for the holder, a spouse or a dependent in the same year, the interest earned may be exempt from federal taxes as well. Face values range from $50 to $10,000. also called Savings Bond.

Use U.S. Savings Bond in a sentence

As a baby, I was given several U.S. Savings Bonds, and when I cashed them out, they were work much more than the initial purchase price.

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Getting U.S. savings bonds is a generally good idea, because it's a safe way to get a return on investment while supporting the government.

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The real value of a U.S. Savings Bond lies in the relative value of the dollar at the end of the bond's term, as severe inflation could easily nullify or even negate the value of the this investment instrument.

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U.S. Savings Bond Adjustment savings bond plan