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Savings Bonds
Term category: Bonds
In 10 words or less:  Bonds issued by the government to regular investors.

Definition: Savings bonds are issued by the federal government to average investors.  They are non-marketable, interest-bearing securities.

Advice: Savings bonds used to be popular gifts.  The interest on these securities are exempt from federal and state taxes.

Furthermore, the government has issued Series I savings bonds, which are inflation-adjusted.  This protects investors from the risks of rising prices.

 

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