savings bond
Học thuậtThân thiện
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
- non-negotiable government bond; cannot be bought and sold once the original purchase is made