What Is a Savings Bond and How Does It Work?
A savings bond refers to a non-marketable security that is backed by the full faith and credit of the United States government, which means that they can never lose principal or interest due to the status of the current financial market. Savings bonds can be obtained through your local credit union and are a great way to increase your financial security.
When you purchase a savings bond, you are basically allowing the government to use your money while paying you interest. Over time, these savings bonds can be cashed out for a higher rate than they were initially purchased for—but there are certain redemption restrictions. For example, you cannot cash a savings bond within six months or one year of the original issue date, and any savings bond cashed within the first five years will be penalized.
Do you already have a savings bond or want to purchase a new one? Give the O’Fallon GCS Credit Union a call at (618) 797-7993 for more information about our savings bonds . Our Illinois credit union also offers savings accounts, checking accounts, auto loans, and debit cards.