Although U.S. Savings Bonds may have seemed like a dumb idea to you when you received them as gifts, the principle behind bonds is sound. In fact, government entities are very likely to issue bonds today. Bonds are often issued on schools or other public facilities, allowing the government to build those facilities without having the money to pay for them. Once the buildings are in use, money will roll in from the taxpayers, and the bonds can be repaid with interest. With bonds, everyone wins. Bonds are a safe investment because the investor knows exactly what the bonds will be worth at the end of the specified period.