Savings Bonds vs Treasury Bonds

Both savings bonds and treasury bonds can provide you with some unique investment opportunities as an investor. Here are the basics of savings bonds and treasury bonds and how they differ.

Savings Bonds

Savings bonds are typically considered smaller forms of investment. You purchase these bonds for half of the face value. They are then going to earn interest, and eventually, you will be able to redeem them for the face value. These bonds can earn interest from the government for as long as 30 years.

Treasury Bonds

Treasury bonds allow investors to invest much more money in them. These bonds have values of up to $1 million. With this type of bond, there is also a secondary market. This means that after you purchase the treasury bonds, you will be able to sell them again to other investors if you desire. Typically, these types of bonds are chosen by institutional investors instead of individuals because of the large investment. Purchasing treasury bonds is a little bit different also because you go through a bidding process instead of simply choosing whatever you want, as you do with a traditional savings bond.

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