Savings bonds are government-issued securities designed to encourage individuals to save money while also providing a safe and low-risk investment option. They are typically offered by governments as a means of borrowing money from the public to finance various projects and initiatives.

Savings bonds are generally considered to be a low-risk investment because they are backed by the government. They offer a fixed interest rate that is typically higher than what can be obtained from traditional savings accounts. This makes them an attractive option for conservative investors who prioritize the safety of their principal.

These bonds have different maturity periods, ranging from a few months to several years. At the end of the maturity period, bondholders are typically paid the face value of the bond plus any accumulated interest. Some savings bonds also offer the option of regular interest payments.

Savings bonds are often non-transferable and cannot be easily sold or traded in secondary markets. However, they can usually be redeemed early with some penalties or restrictions.

Overall, savings bonds provide individuals with a secure investment option that offers a predictable return over a specified period of time.

Savings bonds are low-risk, government-backed debt securities issued to individuals as a way to encourage saving. They are typically sold at face value or a discount and earn interest over time. Since they are backed by the government, they offer safety and guaranteed returns, making them attractive for conservative investors.

Savings bonds usually have fixed or inflation-adjusted interest rates and must be held for a minimum period before redemption. They are non-tradable, meaning they cannot be resold on secondary markets. Common examples include U.S. Series EE and Series I bonds. While they provide stable growth, their returns are often lower than stocks or corporate bonds. However, they offer tax advantages, such as deferred federal taxes and exemptions for education expenses.