Savings Bond

Full Faced Savings Bond guaranteed to get your money back

Advantages

  • You can cash it in before but the value will go down.

  • It’s guaranteed because they will either print more money (which can affect inflation) or raise taxes to make sure they have the money.

  • Low risk because your money is guaranteed and there is no risk factors (backed by government)

  • Savings bonds are an affordable, safe and convenient way for Americans to save. Can buy a savings bond for as little as $25

Disadvantages

  • Low return rate because you have to wait to be able to get your money

  • If you cash in bond before the bond date- the face value will go down.

  • As of Jan. 1, you can no longer purchase U.S. Savings Bonds at your local bank or credit union. Not only that, you can’t buy paper versions of the bonds — with one exception.

  • Purchases of U.S. Savings Bonds must be made through the U.S. Treasury's website. (The Treasury Department expects the move to save the government about $70 million over the next five years.)