Increasing Access to U.S. Savings Bonds: Recommendations for Bond Innovation

Categories: Government/PolicyWealth Building

U.S. Savings Bonds fill a market gap for safe, no-fee, general purpose savings products with low minimum balances and a trusted brand. The Treasury Department can not only preserve bonds as they are currently available—including through the Tax Time Saving Bond Program—but can also take steps to further broaden access and reach people in the retail, payment, and mobile channels that are familiar to 21st-century consumers.

“Administered by the Department of the Treasury, backed by the U.S. Government, and once widely available at most financial institutions, bonds give consumers the ability to save in a uniquely secure and giftable product, without the need for a bank account.”

“With a strong core product and the building blocks of an engaging and accessible infrastructure, Treasury has the opportunity to ring in a new era of savings in the United States by reimagining the distribution and sale of bonds and other retail securities like MyRA.”

  • While U.S. Savings Bonds have features that make them unique from other savings products available in the market, they currently have very limited access points
  • In an increasingly digital and mobile world, people expect solutions that enable them to manage their financial lives easily and through the platform of their choice
  • By developing secure application programming interfaces (APIs) and partnering with innovators, Treasury can bring about new solutions that increase the sale of U.S. Savings Bonds without taking on the entire cost of development
  • These 21st century solutions “meet people where they are” and include: the creation of mobile optimized purchasing and redemption platforms, tapping into the gift card market, and allowing third parties to develop new ways to buy, gift, and save in bonds