US Saving Bonds

How did US saving bonds start?

US saving bonds have been around for decades since the time of President Franklin D. Roosevelt who signed legislation creating the first baby bonds in 1935. Baby bonds were the first US saving bonds available. Unlike most bonds and Treasury securities, US saving bonds are not marketable. Most US saving bonds come in paper form and can be replaced if lost or stolen. There are some electronic US saving bonds available.

Who introduced US saving bonds into the US economy?

Treasury Secretary Henry Morgenthau, Jr. in 1935.

How were US saving bonds used in the past?

The US government has used US saving bonds to finance many capital projects as well as to finance World War II expenses. Since their inception, US saving bonds have been sold to the public widely since they come in small denominations that small investors can afford.

Safe investment, not susceptible to market fluctuations

US saving bonds were designed to sustain market conditions and movements. US saving bonds were offered as savings, rather than investments, with fixed interest payments and redemption values much like most bonds.

What are baby bonds?

Baby bonds are early Us saving bonds. These baby US saving bonds were issued in four successive series called series A, series B, series C and series D US saving bonds. There has not been a baby bond issued since 1941.

Baby bonds were sold in denominations from $25 to $1,000. They were priced at 75% of the face values. The interests paid on baby bonds were at 2.9% if they were held for 10 years to maturity. The last of the baby US saving bonds issued matured in April 1951. Baby US saving bonds no longer pay interests.