A U.S. savings bond is an investment backed by the government, explains Investopedia. Savings bonds are sold in set denominations and accrue interest up to 30 years after purchase, notes TreasuryDirect. Buyers redeem bonds for the original amount plus interest at any point at least one year after purchase.
A person who buys a bond designates a single beneficiary for that bond, and only that beneficiary is able to redeem it, explains TreasuryDirect. Buyers are able to register bonds in the name of any person who has a TreasuryDirect account directly, provided the buyer knows the receiver's full legal name, TreasuryDirect account name and social security number.