Savings bonds
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Wednesday, 22, Nov 2006 03:11
Savings bonds are a type of savings account where money is put away for a set period.
Typically, these offer a high rate of interest, but collecting this interest is dependant on the money invested remaining in place for a set period of time (typically one or two years).
People investing in a savings bond can generally access the money they have placed in a savings bond before the completion date, but choosing to do so might mean that less money is returned than was invested or that the amount of interest received is lower than would otherwise be the case.
Savings bonds are typically issued in blocks, with a provider offering access to fixed-rate or guaranteed return savings for a limited time only.