War bonds was the name given to a saving bond that is purchased from the government treasury during times of war. The idea being that a citizen could place their money into a safe investment whilst helping finance military operations and in their own way help win the war. War bonds had a set interest rate, which was usually lower than what was normally offered, and could be cashed in for the face value plus the interest at a later date. The war bonds cannot usually be cashed in until after the war had ended. The government was able to use this money to finance their involvement in the war.
Often war bonds were sold by calling on the public’s sense of patriotism and conscience. Huge rallies were held that included performances by famous movie stars and speeches by war heroes to encourage people to buy war bonds. War bonds were issued in a variety of denominations in an attempt to bring in as much money as possible. School children were able to buy small stamps with pennies they had saved up whilst wealthy citizens could purchase large war bonds.
War bonds were also used as an economic measure. The idea being that with people invested their money into war bonds rather than spending it in an unstable economy, inflation would be kept at manageable levels. It also meant that once the war was finished the bonds could be cashed which would encourage spending and stimulate the peace time economy into recovery.