Pilot Testing Series I U.S. Savings Bonds at Tax Time
Why Bonds?
The absence of a suitable saving product keeps millions of Americans from saving money. What if all Americans had easy access to a universal, secure, simple saving instrument?
A Ready Solution
Such a product already exists, and has helped generations of working people save for themselves and their children, grandchildren and others. U.S. Savings Bonds have a 70+ year history as a trusted way to plan for the future and build a nest egg.
A Wasting Asset?
In recent years, savings bonds have faded from the public eye as government funds for marketing them stopped in 2003 and , increasingly, people associate them with grandparents and financing for long-ago wars.
D2D and its partners have worked for the last several years to resurrect this tested, unique savings product and have tested U.S. Savings Bonds at VITA sites every year from 2007 to 2010.
In 2010, because the new savings bond policy was implemented for the first time for taxpayers, pilot sites used both the pilot software and Form 8888 on the tax form to order bonds for tax clients only. In 2007 D2D also tested U.S. Savings Bonds H&R Block ("HRB") sites.
The 2007 Pilots ("R2A4"):
Bonds were offered at 4 VITA sites and at 31 HRB tax preparation sites (Boston, Schaumburg, IL).
See "America’s Best Kept Saving Secret" for more on the VITA pilot, and "Tax Time Savings: Testing US Savings Bonds at HRB Tax Sites" for the HRB pilot.
The 2008 Pilot ("R2A-5")
In 2008, D2D and its partners offered bonds to 32 sites in 11 cities. Eight were research ("R2A-5") sites. Twenty-four offered bonds but did not participate in the research. All sites used the "Savings Bond Portal" developed with H&R Block. See "Returning America to Thrift" for more on the pilot.
The 2009 Pilot ("R2A-6")
In 2009, D2D and its partners offered bonds to 67 sites in 19 states. Sixteen were research ("R2A-5") sites. The others offered bonds but did not participate in the research. All sites used the "Savings Bond Portal" developed with H&R Block. See "Yes We Can" for more on the 2009 tax season pilot.
The 2010 Pilot (“R2A-7”)
In 2010, bonds became available as a purchase option on the 1040 via Form 8888 for tax filers and/or their spouses, but tax filers could not buy bonds for others. In the D2D pilot, sites focused on offering bonds that were to be bought for others as gifts, mostly for children and grandchildren of tax filers. Twelve were research ("R2A-7") sites. The others offered bonds but did not participate in the research. All sites used the "Savings Bond Portal" developed with H&R Block. See "Everyone Can Save" for more information.
Key Findings from the pilot years 2007-2010
There is continued demand to save through Savings Bonds at tax time.
- Offering savings bonds at tax time motivates non-savers to become first-time savers
- Saving for others is a significant motivator.
- While awareness of bonds is high – notably in certain ethnic groups – more outreach and education is needed to inform potential savers about how and where to purchase bonds.
- Savings bonds serve as gateway to more saving, helping purchasers identify a path toward greater economic security.