Savings bonds are a type of government-issued debt security designed to provide a safe, low-risk investment option for individuals. Typically offered by national governments, such as the U.S. Treasury, savings bonds are considered one of the safest investments since they are backed by the full faith and credit of the issuing government.

Savings bonds are often purchased at a discount to their face value, and they accrue interest over time. The interest is typically fixed and accumulates over a set period, usually up to 30 years. The bondholder receives periodic interest payments or the interest compounds until the bond matures, at which point the investor can redeem the bond for its full face value, including the accumulated interest.

In the United States, the most common types of savings bonds are Series EE and Series I bonds. Series EE bonds offer a fixed interest rate and are guaranteed to double in value over 20 years. Series I bonds, on the other hand, offer a combination of a fixed rate and an inflation-adjusted rate, making them appealing during times of rising prices.

Savings bonds are popular for their simplicity, safety, and tax advantages. Interest earned on savings bonds is exempt from state and local taxes and can be deferred for federal taxes until the bond is redeemed.