Answers - US Savings Bonds
A nontransferable registered bond issued by the U.S.
http://www.answers.com/topic/savings-bond
US Savings Bonds - Wikipedia
Savings bonds were created to finance World War I.
http://en.wikipedia.org/wiki/Us_savings_bonds#Nonmarketable_Securities
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Useful Information on US Savings Bonds:
So what exactly are US Savings bonds? They represent debt by the United States government. The US Governement provides an interest rate on these securities and will compound that interest throughout the life of the bond. The nice thing about US Savings Bonds are that they are backed by the United States government, which makes them a safe investment versus other types of investments.
This comes in handy during times when the economy is uncertain. People are unsure whether to invest in the stock market, because of falling prices. However, bonds have always been a safe investment for the reason that they are backed by the government. It is why you should research this as a good way to separate your eggs into more than one basket. Bonds are a good back up investment on the side from your more risky investment strategies.
Aside from them being secure, another advantage to US Savings Bonds are that the interest rates are competitive. In addition, there is a monthly accrual of interest with Savings Bonds.
Another advantage are the tax benefits that you recieve. The nice thing about savings bonds are that they are exempt from taxation (localy and at the state level). In fact, the only taxes you have to pay are the federal taxes when the bond fully matures.
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