Types of Savings Bonds

EE Savings Bond Information for Savings Bond values, EE Bond rates, EE Bonds Maturity, Savings Bond information, EE Savings Bond rates

A foreign bond is a bond issued in a domestic market by a foreign entity in the domestic market's currency as a means of raising capital. For foreign firms doing a large amount of business in the domestic market, issuing foreign bonds, such as bulldog bonds, Matilda bonds and samurai bonds, is a common practice.

A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.

Paper Series I Savings Bonds are purchased at face value. For example: A face-value $100 paper I bond is purchased for $100. The minimum purchase of a paper I Savings Bond is $50; The maximum purchase of paper I Savings Bonds annually, per calendar year, is $5,000.

An investment grade is a rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such as Standard & Poor's and Moody's, use different designations consisting of upper- and lower-case letters 'A' and 'B' to identify a bond's credit quality rating.

Savings Bond Definition. A savings bond is a debt instrument. Similar to other bonds, when you buy a savings bond, you are loaning money to the issuer — the U.S. government. Savings bonds are issued in small denominations, with a face value between $25 and $10,000.

Savings Bond Basics. The U.S. Department of the Treasury issues savings bonds as debt securities to fund the federal government's borrowing needs. Savings bonds are considered very low risk because the American government backs them.

Create a savings bond based on information entered. Beware of internet scams with a picture of this site claiming that you can enter your birth certificate number to access bonds owed to you. Those claims are false, and attempts to defraud the government can be prosecuted. See

The U.S. Treasury issues a range of debt and savings securities to raise money for the government to use. Treasury bills, notes and savings bonds are significantly different from each other and serve different purposes for investors.

Treasury bonds earn a set rate of interest, determined at the time of the auction, varying relative to current market rates. The Treasury also sets interest rates for savings bonds, but this is done on a schedule twice each year. Savings bonds earn monthly interest that is then compounded semiannually.

Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.

The Treasury Department sells all bills, notes, and bonds at auction with a fixed interest rate. When demand is high, bidders will pay more than the face value to receive the fixed rate. When demand is low, they pay less.