Can savings bonds lose value?

It is important to remember that savings bonds are not without risk. Although they are backed by the full faith and credit of the United States government, they can still lose value. In general, the longer a bond is held, the less likely it is to lose value. However, there is always a chance that interest rates will rise and that inflation will erode the purchasing power of your investment. For this reason, it is important to monitor your savings bonds carefully and to cash them in if you need to access your money.

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