An explanation with an example would be greatly appreciated. Thank you 🙂
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Bonds are investment vehicles that typically don’t pay interest regularly but instead have a specific time or event when they “mature” and pay back the capital invested together with the interest accrued as a lump sum.
How you pay in and when you get the money can vary widely depending on who is offering them. Some may be for a fixed term, others may pay out when the holder reaches a specific age, like 18. Some may be cashed in early with some loss of interest, others may allow periodic additions to the sum invested. Some types, like those issued by governments, can be traded as assets themselves. Savings bonds are usually offered by banks and other places providing savings accounts as an alternative to interest-paying accounts and offer premium rates for locking your money up for longer terms.
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