savings bond

savings bond definition - business

savings bond

A nonmarketable security issued by the U.S. Treasury in relatively small denominations for individual investors. Two categories of bonds are currently available for purchase. Interest on these bonds is exempt from state and local, but not federal, taxation. Also called United States savings bond. See also Series EE savings bond, Series HH savings bond, Series I savings bond, Treasury Direct.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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