U.S. Savings Bonds
U.S. savings bonds are non-transferable and non-callable bonds issued by the US government and backed by its full faith and credit, which offer fixed interest rate over fixed period of time.
Like Treasury bonds, US savings bonds are free from state and local tax, but earnings are due to federal taxes. However, federal taxes may be deferred until bonds are redeemed.
Since these bonds are non-transferable, there is no secondary market for them, which means that they can not be bought or sold after they are purchased. In addition, savings bonds offer low risk but also lower returns when compared to the common stock market securities.
Savings bonds are issued with face value from $50 to $10.000.
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