Q:

What is a U.S. savings bond?

A:

Quick Answer

A U.S. savings bond is a debt security that is issued by the Department of the Treasury. Its function is to pay for the borrowing needs of the government. A savings bond is backed by the credit of the U.S. government and considered a safe investment.

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Full Answer

There are three types of U.S. savings bonds that can be purchased by consumers as of January 2015. These savings bond types are the Series EE, the Series I and the Patriot Bond. The Patriot Bond was first issued on the three month anniversary of the September 11 terrorist attacks. Savings bonds can be purchased at most local banks in the United States, and consumers can also make purchases online.

The value of a U.S. savings bond can be determined using the Savings Bond Calculator offered by the Department of the Treasury. In order to use this tool, consumers will need the series and denomination of the bond. Consumers also need the issue date that is printed on the bond, as well as its serial number. The tool also allows consumers to determine the value of the savings bond in future or past months by selecting a date ranging from January 1996 to the current rate period.

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