Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
Savings bonds are government-issued debt securities that pay interest over a fixed period, offering a low-risk investment option for individuals. They are designed to finance government spending and support national economic goals.
Related terms
Interest: The amount paid by a borrower to a lender above and beyond the principal borrowed, serving as compensation for the use of borrowed funds.
Debt Securities: Financial instruments representing money owed by the issuer to the holder, typically involving periodic interest payments and repayment of principal at maturity.
Macroeconomic Goals: Objectives set by governments or economic policymakers focusing on achieving sustainable growth, full employment, and stable prices in an economy