Savings bond

Savings bond, interest-bearing bond issued to an individual by the government in specific denominations, functioning as a loan to the government for a fixed term. U.S. savings bonds were first issued to raise money during World War I. Series E, issued from 1941 to 1979, helped finance World War II. The current Series EE is issued in denominations from $50 to $10,000, sold for 50% of face value. Bonds reach maturity (come due) in 12 years. While earlier bonds had fixed interest rates, government savings bonds since Nov. 1982 have market-based rates. U.S. savings bonds are issued by the Department of the Treasury.