Savings Bonds guarantee increase in value at which minimum interval?

• A. Yearly.
• B. Monthly.
• C. Quarterly.
• D. Half-yearly.

Answer: (A)

Savings bonds grow because they earn interest that adds to the bond’s value over time. That interest accumulates and is reflected in the bond’s value as time passes. The smallest interval over which you can count a guaranteed increase in value is one year, because the interest that accrues over a full year translates into a higher book value than at purchase. While interest may be credited or compounded on a different schedule (monthly, semiannually, etc.), the assured rise in value is observed and measured on an annual basis. So, the bond’s value is expected to be higher after each year, reflecting the accumulated interest.