A U.S. savings bond is a government bond offered to its citizens to help fund federal spending, and it provides savers with a guaranteed, although modest, return. These bonds are issued with zero coupons at a discount with an implied fixed rate of interest over a fixed period of time. Series EE savings bonds are sold at 50% of their face value, and mature to their full value after 20 years. When the government sells bonds, it is in effect taking a loan from the public, which it promises to pay back at some predetermined date in the future. As compensation for providing it with capital, the government makes interest payments to its bondholders.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

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