Lots of people would love you to invest your money with them, including Uncle Sam (the U.S. Government). One of the safest types of securities, are the ones offered by the U.S Treasury. Because they are backed by the Government there’s no real chance of you missing out on a payment. However, Treasuries values’ fluctuate, just like Corporate Bonds.
The advantages of Treasuries are, risk of default is nil, these bonds are exempt from State and local taxes (but you will still pay capital gains, i.e. any profit you make from a Treasury sale), and you can also buy Treasuries directly and eliminate commissions.
A negative is that because Treasuries are considered safe, the amount of interest they offer is generally less than even AAA-rated Corporate Bonds.
Note: A Treasury Savings bond might have been your first type of savings since some people give U.S. EE/E Savings Bonds when a child is born. Bad news, you probably will have to wait till you’re 30 to cash in. If you see a bond around, the amount on the note is the amount you get (the buyer paid half of that; i.e. a $50 bond payable in 30 years, was bought for $25). Your relatives/friends knew how to save money too! Check with your parent(s) to see if you were given one of these bonds. To learn more about all the U.S. Treasury Offerings go to http://treasurydirect.gov .