Savings bonds are used by governments worldwide as a way of borrowing money. People invest their money in savings bonds and are promised a certain return on that investment.
When you invest in the savings bond, you will be guaranteed a stated interest rate. This rate may go higher depending on the financial environment but it can't go any lower. You have a firm commitment in that regard.
Such savings bonds can be bought in most financial institutions. Banks, credit unions, trust companies and brokerage firms all sell interest rate savings bonds. Some companies also have an employee savings plan, which will allow you to invest in these bonds on a regular basis.
In some jurisdictions, these savings bonds are not sold all year round. In Canada for example, they are only sold between early October and the beginning of /April. But all you need to do is to ask at your local bank or check online to see if they are available when you want to invest.
There are ways and means of making savings bonds work better for you. You can either make a lump-sum purchase of savings bonds. You might do this when you get some extra money, perhaps from a bonus at work or even a tax refund. Or alternatively, you could just set yourself a target and save up until you reach it.
Whatever you do, don't just let large sums of money sit idly in your bank account. Firstly, you might just be tempted to spend it and secondly, that money could be earning you far more elsewhere.
Another way of maximising your savings bonds is to enrol on a payroll savings plan at work. Under such as scheme, your company will withhold a certain amount from your pay. When you have enough saved, this will go to buy savings bonds.
Many people find schemes such as this perfect, especially if they have trouble savings themselves. Sine the money goes into the account automatically; there is no chance that you will be tempted to spend it.
What's more, if you buy bonds through regular payments during the course of a year, you could end up earning more interest than if you put in a lump sum once a year.