Savings Bond Definition

Learn the definition of savings bond and other ETF terminology from the glossary.

Reviewed by: Staff
Edited by: Staff

Learn more about Savings Bond

While not an ETF, a Savings Bond is a fixed-income investment issued by the U.S. Department of the Treasury, providing a stable and government-backed savings option. Unlike ETFs, Savings Bonds are not traded on exchanges. Investors purchase Savings Bonds at a discount to face value, and they accrue interest over time. Although lacking the liquidity and tradability of ETFs, Savings Bonds offer risk-averse investors a conservative and secure avenue for capital preservation and income generation, emphasizing stability and government support as foundational pillars of their appeal.

Related Terms

ETF Glossary is’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.