For years financial brokers have joked with their clients if they werent risk takers and wanted to invest like old ladies or orphans. That often stirred up the conversation of which are the Safest Bonds to Purchase and the answer to that is quite easy.
For decades the US government have been borrowing money from their citizens in the guise of US Savings Bonds. Investors purchase bonds, the government guarantees a return for the investment and uses the money they borrowed to finance and pay for their needs. A US Savings Bond is like an IOU from Uncle Sam and there is no safer family member to trust making it an extremely Safe Bond to Purchase.
When investing ones hard earned cash into savings bonds, consumers are guaranteed not only the return on their principal but also an additional yield rate for the money they loaned. The maturity of the bonds are usually long term, stretching toward 30 year investments. So even if the money was loaned during financial crisis for the US, in thirty years the economy will certainly shift and the government will make good on their loans making US Savings Bonds the safest investment one can make.
Historically, there have been problems when consumers tried to redeem their savings bonds. The first issue truly occurred when the US issued Liberty Bonds in 1917 as a way to fund WWI. When the bonds reached maturity (after the war), the Treasury did not have enough surpluses to pay back the investors. The Feds refinancing the bonds with debt with variable short and medium-term maturities resolved the problem. Even when there was a problem, US Savings Bonds were still one of the Safest Bonds to Purchase.
Since that time, many safety nets have been put in place to help ensure the purchase of US Savings Bonds be one of the safest investments a consumer could make.
