Definition

Noun: A savings bond is a non-negotiable debt security issued by a government. It is designed for individual investors as a low-risk savings instrument. A key characteristic is that it cannot be traded on the secondary market; once purchased from the government, it cannot be resold to another person.

Usage

Savings bonds are typically purchased at a discount to their face value and mature over a set period, at which point the government pays the full face value. They are often used for long-term savings goals, such as education or retirement. - She bought a savings bond for her newborn niece to help fund her future education. - Unlike corporate bonds, a savings bond cannot be sold to another investor before it matures.

Advanced Usage

• "To hold a savings bond to maturity": To keep the bond until its full term is complete to receive its total face value and accrued interest.
  • For the maximum return, it is best to hold a savings bond to maturity.
• "To cash in a savings bond": To redeem the bond with the issuing government, receiving its cash value.
  • He decided to cash in his old savings bonds to pay for a new car.

Variants and Related Words

• Government bond (n): A broader category of debt securities issued by a government, which may be negotiable or non-negotiable. All savings bonds are government bonds, but not all government bonds are savings bonds.
• Treasury bond (n): A specific type of long-term, negotiable government bond issued by the U.S. Treasury. This is distinct from a U.S. savings bond.

Synonyms

• Non-negotiable bond: A direct synonym emphasizing the key restrictive feature.
• Government savings certificate: A similar term used in some countries.

Related Phrases

• Series EE bond: A common type of U.S. savings bond.
• Series I bond: A type of U.S. savings bond with an inflation-adjusted interest rate.

Noun

1. non-negotiable government bond; cannot be bought and sold once the original purchase is made