These are bonds sold by the U.S. Treasury in denominations of $50 to $10,000 that mature in 30 years. They are exempt from state and local income taxes and are nontransferable. Two kinds are available. I bonds, sold in denominations of $50 to $5,000, are inflation-indexed and have interest that compounds semiannually. EE bonds, sold in denominations from $50 to $10,000, have fixed interest rates. EE bonds are sold at half face value and redeemed at full face value. U.S. savings bonds are considered safe, low-risk investments because they are backed by the “full faith and credit” of the federal government. However, their interest rates historically are lower compared with other types of investment.