US treasury bonds have long been considered as the savings instruments which are amongst the most secure ones. However, there is a section of people who oppose the belief and state that the risks associated with the treasury bonds are way too high to be ignored. Therefore www.savingsaccounttips.info has introduced information and offers for its users to help them understand this instrument.

It is usually thought that these bonds are as safe as the US government itself. Whatever be the conditions the US government will save the plight of these bonds and they will continue to exist and perform as per the desired levels. However, there is another school of thought which believes that the government will not necessarily act in the desired manner every time. There are times when things tend to go out of the hands of the US government for the reason that the situations are a result of the government policies and interventions only.

The US treasury bonds offer minimal interests which are sometimes way below the inflation. These low interest rates are often responsible for the customers getting disinterested in them. An interest rate of 3-3.5% of these bonds is easily surpassed by the inflation figures which are more than the same. So, if an individual invests in these bonds and receives 3.5% as a return, however the inflation beats the interest rates on the bonds by 1% rising to 4.5% during the specified period means that the individual is at a loss on the investment.

Looking at the overall scenario one can easily understand that these treasury bonds although safe are not at all worthy investment options and most of the times investors return will either be too low or beaten by the inflation numbers.

There are various types of US Treasury bonds. Some of them are illustrated below:

Federal Agency bonds offer better returns. They offer better interest rates as compared to these bonds and are safe. Federal Agency bonds generally are for a period ranging between 1-30 years. The interest earnings on these bonds are tax exempt and hence are more attractive investment options. Municipal bonds are one among the different types of US treasury bonds. They are issued by the municipal corporations, states or local cities. These bonds too offer tax free returns on the investments.

Municipal bonds are often classified into two types :

- Based on the municipalities vigor and agility to collect the taxes from its citizens comes under the General obligation type.

- Revenue Bond as the name suggests depend on the performance of the different projects which the municipalities take up in their respective localities.

Interest rates on the bonds will vary as per the degree of risks involved in them.

Gone are the days when people used to wait for years to get interest rates which were just able to beat inflation by a margin. People and investors today are fully aware of the implications of inflation and hence rule out the US treasury bills from their portfolio. Mutual funds and stock which offer great returns no longer stand somewhere close to the Treasury bills.

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