Definition

A government-issued bond that lets you lend money to the government in exchange for interest over time.

What to consider

  • Consider them for safe, long-term investment returns.
  • Review their maturity dates and interest rates.
  • Use them as a conservative part of your investment mix.

Real world scenarios

  • For a secure long-term investment, Olivia purchased a savings bond that promised a fixed interest rate over several years.

Related terms

Banking & Savings