Government bonds are a good form of investment because they are a relatively low-risk investment and provide routine returns for individuals who need a steady source of income from their investments, as reported by NASDAQ. U.S. Treasury bonds are considered to be a particularly reliable form of bond investment, and though there is always some degree of risk involved with investing, buying a bond from the U.S. Treasury is said to be one of the safest forms of investment available to consumers. This safety and security is very appealing to investors who cannot afford to take large risks with their money.
One big advantage of government bonds is that they allow investors to put their money to work in a safe way that still brings in larger returns than those typically available through savings accounts. Bonds provide a better option than savings accounts for those who do not need immediate access to their funds.
There are two types of government bonds in the United States: municipal bonds, which are issued by state or local governments, and U.S. Treasury Bonds, which are issued by the federal Department of the Treasury, according to the U.S. Securities and Exchange Commission. Treasury bonds are considered to be the safer of the two types of government bonds because they are fully backed by the federal government.