Savings Bond Definition
Learn the definition of savings bond and other ETF terminology from the etf.com glossary.
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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.
