What type of investment typically involves minimal risk?

Government-issued savings bonds are designed to be low-risk investments. These bonds are backed by the full faith and credit of the issuing government, which means that they are considered extremely safe compared to other investment options. They are essentially loans made to the government, and in return, investors receive interest over time, along with the return of their principal investment at maturity.

Investing in savings bonds is an attractive option for those who seek capital preservation and a stable return without the fluctuations typically associated with stocks, real estate, or cryptocurrencies. The government backing ensures that the likelihood of default is very low, making these bonds suitable for conservative investors or those looking for a steady, albeit modest, income stream.