What are U.S. government bonds?
submitted by Tim Burr

skatin_on_by

U.S. government bonds are basically IOUs that the government issues to raise money. When you buy one, you're lending money to the government, and they promise to pay you back with interest later. They're considered super safe because the government is unlikely to default.

heather gray

U.S. government bonds are a type of debt security. The government sells these bonds to investors like you, and in return, they agree to pay back the amount invested plus interest over time. They're often seen as low-risk investments because they're backed by the U.S. government.

You should keep in mind that your money is locked up for a certain period though. That's part of the agreement. They'll give you that interest in exchange to having access to your money for a certain time, like 10 years.

The big question is, which goes up faster, your interest or inflation?