How do savings bonds work?

When you buy a U.S. savings bond, you lend money to the U.S. government. In turn, the government agrees to pay that much money back later - plus additional money (interest). Buy once. Earn interest for up to 30 years. Backed by the full faith and credit of the U.S. government. Buy them for as little as $25. Guaranteed to double in value in 20 years

How do bonds work?

Bonds work by paying back a regular amount to the investor, and are referred to as a type of fixed-income security. A bond's rate is fixed at the time of the bond purchase, and interest is paid to investors on a regular basis — monthly, quarterly, semiannually or annually — for the life of the bond.

Are municipal bonds tax free?

Some municipal bonds offer tax-free coupon income for investors. Government Bonds: Bonds issued by the U.S. Treasury with a year or less to maturity are called “Bills,” bonds issued with one–10 years to maturity are called “notes,” and government bonds issued with more than 10 years to maturity are called “bonds.”