The US Treasury issues Savings Bonds.  They are a non-marketable security meaning you cannot buy or sell them unless you are an authorized issuing and redeeming agent designated by The US Treasury Department. They are also considered a registered security - which means that the person or persons named on the bond owns them.

There are several reasons why Americans buy Savings Bonds.  Often safety is cited as a primary reason.  Savings Bonds are backed by the full faith and credit of the United States Government, therefore, the principal and interest will never be lost due to changes in the financial markets.

Savings Bonds are also free from ALL state and local income taxes.  You can also defer federal income taxes on the earnings if you wait until the bond reaches final maturity or when you cash it in. You can invest as little as $25 (and even smaller amounts from Payroll Deductions Plans), so it is an easy way for Americans to save. Some Savings Bonds are even entirely Federal Income Tax Free if used for Educational Purposes.

(comments: lately the yeild on savings bond hasnt been so attractive.  some bank CDs are more appealing.)

Currently there are three typed of bonds for sale: EE, I, and the Patriot bond (first issued on December 11, 2001 - the 3 month anniversary of the WTC/terrorist attacks) - following all the same rules and regulations of an EE bond.

[此贴子已经被作者于2006-7-24 11:13:46编辑过]

I BONDS

• Sold at face value. (You pay $50 for a $50 bond.)
• Offer a real rate of return over and above inflation.
• Buy as much as $30,000 per year.
• New rates announced each May 1st and November 1st. This inflation adjustment ensures that your savings earn money over and above inflation.
• Earn interest for up to 30 years.
• Can be redeemed anytime after 12 months.*
• Exempt from state and local income taxes.
• Backed by the full faith and credit of the United States.
• Available in TreasuryDirect in any amount between $25 and $30,000. Also available in paper form in the following denominations: $50 $75 $100 $200 $500  $1,000 $5,000 $10,000

* If redeemed before 5 years, there is a 3-month loss of interest.

* If redeemed before 5 years, there is a 3-month loss of interest.

[此贴子已经被作者于2006-7-24 11:19:46编辑过]

SERIES EE BONDS

• Sold at half their face value. (You pay $25 for a $50 bond.)
• Earn rates based on five-year Treasury securities.
• Buy as much as $15,000 per year.
• New rates announced each May 1st and November 1st. This rate adjustment ensures that your savings always tracks the Treasury bond market. 
  
• Earn interest for up to 30 years. You can delay the tax consequences by exchanging them for Series HH Savings Bonds for up to 20 more years.*
• Can be redeemed anytime after 12 months.*
• Exempt from state and local income taxes.
• Backed by the full faith and credit of the United States.
• Available in the following denominations: $50 $75 $100 $200 $500 $1,000 $5,000 $10,000
      

* If redeemed before 5 years, there is a 3-month loss of interest.

* If redeemed before 5 years, there is a 3-month loss of interest.

[此贴子已经被作者于2006-7-24 11:20:13编辑过]

Thats the background of the savings bonds (I and EE bond).  You may also check http://www.treasurydirect.gov to get more information about the current rate and their FAQ section.

There is also a post some time ago that has similar discussion on the savings bond.

http://www.huaren.us/dispbbs.asp?boardid=336&replyid=370978&id=183312&page=1&skin=0&Star=1