http://bondsmakeiteasy.org This presentation can be used by tax sites to train staff and tax preparers about the new opportunity for their tax clients to save a portion of their refunds directly on the tax form into U.S. Series I Savings Bonds. It provides information on why savings matters, the features of U.S. Savings Bonds, and how to present savings at tax time. This presentation is usually delivered as a webinar, but can also be used in a classroom setting.

1. Tax Time Savings
for all with U.S.
Savings Bonds:
Training Webinar

2. 2
A Savings Crisis
Some alarming facts:
■ Americans had stopped saving –
in early 2008 our personal savings
rate fell to just 0.1%.
■ Debt has grown – from 1994 to
2008, average family credit card
debt doubled from $4.3k to $9.6k.
■ Inequality is high – the bottom 40% of
Americans own 5% of the nation’s wealth.
■ Vulnerable are hardest hit – poorest 25% of
families have negative net worth.
■ Finally, a window of opportunity to help
people save again - the savings rate is
creeping upward as a result of the recession

3. 3
Why Saving Matters
Role of Savings:
■ emergency reserves
■ for “get ahead” investments (home,
education, retirement)
■ alternative to costly credit
■ provides sense of security, comfort
Process of Saving:
■ promotes thinking ahead, prioritizing
■ models behavior for kids
■ emotional payoff (pride, satisfaction)
“No one has ever
spent his way
out of poverty.”
~ Dr. Michael
Sherraden

4. 4
But Saving is Hard
Challenges lower-income
savers face:
■ Limited income – a minimum
wage worker makes $15K a year.
■ Consumerism – pressure to buy
is everywhere.
■ Family & friends – are often in
need, creating pressure to share
resources.
■ Few opportunities – most
people save with structured help
(e.g., 401(k) plans), but poor
people get little or no such help.
Q: How many
Americans
currently hold
Savings Bonds?
A: 55 Million.
(That’s 1 in 6!)

5. 5
With Help, Anyone can Save
Some Examples:
In one matched saving test:
■ 2,300 people saved $1.3MM - 2.2%
of their income, an average of $550
■ Almost half lived below poverty level;
4 in 5 lived below 2x the poverty line
In test of U.S. Savings Bonds:
■ 1,385 VITA tax clients (6%) saved
$250k+ in bonds for 2,300 people
■ Buyers’ average income: $20K
■ Average amount saved: $192
$500 invested in a US
Savings Bond at 4% for
10 years will grow to
$743.6
Tax Clients want to Save
In one study, 49% of
VITA clients agreed:
“I wish that when I had
cash, I was better
disciplined & saved it
rather than spent it.”

6. 6
A Quick Quiz…
Low and moderate income tax filers receive how
much money each year in federal tax refunds?
■ $100 million (average of $500 per household)
■ $1 billion (average of $1,000 per household)
■ $100 billion+ (average of $1,680 per household)

7. 7
A Quick Quiz…
Low and moderate income tax filers receive how
much money each year in federal tax refunds?
■ $100 million (average of $500 per household)
■ $1 billion (average of $1,000 per household)
■ $100 billion+ (average of $1,680 per household)7
What might help people
save some of these funds?

8. 8
Tax Time Opportunity
Key elements to foster saving:
■ Funds to Save - $100 billion is
returned to poor families each year
● On average, $1,680 per household
● Up to 20% of annual income
■ Assistance – tax preparers can serve
as trusted helper to suggest saving
■ Convenience – saving at tax time
requires no 2nd
step, extra trip to bank
Assistance and guidance
from a trusted tax
preparer is a critical to
helping tax clients save
at tax time

9. 9
Something to Consider
For many lower-income clients
■ tax season is the only chance each
year when saving seems possible.
■ a tax preparer may be the only
person all year who asks them to
think about saving.
Most people won’t save unless someone
asks them to consider it.
VITA volunteers & staff owe it to their
clients to raise this important topic.
Buying $100 U.S. Saving
Bonds every year for 20
years would leave a tax
client with over $3,000 –
enough to fill the gaps in a
child’s college scholarship.

10. 10
A Proposition
How about a “Return to Thrift”?
■ culture that supports saving
■ more families with financial reserves
■ emphasis on the future, planning
■ especially critical for working families
But How?
■ need a secure, trustworthy product
■ available to all, at key moments
■ long-term in nature
■ able to be gifted…
Did You Know?
From 1917-1966, the
YMCA and others
sponsored “National
Thrift Week,” complete
with local “Thrift
Captains”

11. 11
How many Americans own U.S. Savings Bonds?
■ Over 1 million
■ Over 10 million
■ Over 50 million
Another Quick Quiz

12. 12
How many Americans own U.S. Savings Bonds?
■ Over 1 million
■ Over 10 million
■ Over 50 million
55,000,000 Americans own savings bonds – 1 in 6!
Another Quick Quiz

13. 13
How many Americans own U.S. Savings Bonds?
■ Over 50 million
55,000,000 Americans own savings bonds – 1 in 6!
In the 1960s, tax filers could receive their federal
refund in the form of a savings bond.
■ True
■ False
Quick Quiz

14. 14
Yes! Here’s an example…
How many Americans own U.S. Savings Bonds?
■ Over 50 million
55,000,000 Americans own savings bonds – 1 in 6!
In the 1960s, tax filers could receive their federal
refund in the form of a savings bond.
■ True
■ False
Quick Quiz
1962 Form 1040A
With option to receive refund as U.S. Savings Bond

15. 15
It’s easy to do on Form 8888
Just complete Part II for
U.S. Savings Bonds
If bonds are for tax filer
just complete Line 4
If bonds are for others,
complete Lines 5 and 6
■ If beneficiary check
box
Enter amounts on RHS
.

16. 16
U.S. Savings Bonds Overview
Series I U.S. Savings Bonds
an “IOU” from the US Government:
■ safe – principal protected by “full
faith & credit of U.S. government”
■ accessible – buy for as little as $50
■ smart – solid return (.74%), no fees
■ simple – sold at “face value” ($50
buys $50 bond), rate adjusts twice a
year
■ long-term – must be held for 1 year
before “redemption” (cashing in)
■ portable – may be redeemed at
most banks & credit unions
U.S. Savings Bonds
have been a
popular, respected
investment option
for over 70 years.

17. 17
Important Bond Facts
Redemption (“cashing in”)
■ At most banks & credit unions
■ Requires valid ID
Minimum holding
■ Must be held for 1 year
■ If redeemed before 5 years, lose 3
months’ interest
Loss / theft replacement
■ Complete Treasury Form PDF 1048
■ Get signature certification from bank
■ Mail to Treasury
Proceeds from Savings
Bonds are exempt from
federal tax if used for
secondary education
(check IRS Publication
970 for details).

18. 18
Savings Bonds as Gifts
Tax Clients can buy bonds for:
■ Themselves
■ And/or up to three other people
■ e.g., kids, grandkids, spouses,
nieces / nephews, godchildren, etc.
Details
■ Tax client needs only name of gift
recipient (no SSN)
■ Client & gift recipient will be listed on
bond as co-owners
■ Either party may redeem bond
In a 2008 study, 68% of
buyers purchased
savings bonds for
others, mostly children
& grandchildren

19. 19
John Q. Saver
123 Main Street
Anywhere, WA 99000-0000
OR Jen Saver
123-45-6789 01 2009
FRB-MPLS
04-15-07
2
:C000090007 :04 000000000000 C000000000I
Purchaser’s Social Security Number
Owner’s Name & Address (Co-Owner Name, if any) Authentication Stamp
Issue Date
Example Savings Bond

20. 20
Bond Features & Benefits
Benefits
Reach saving goal sooner
No fees to erode savings
Simple tax site order process saves time
Easy to give savings as a gift
Value not lost as prices rise
Feature
Competitive return (.74%
currently)
No fees
Convenient
Can buy for others
Inflation protection
Loss & theft protection Savings are safe

21. 21
Bonds vs. Savings Accounts or CDs
Savings Bonds: CD-like returns, no fees and a $50 minimum
Typical Savings
Account*
Typical 1 Year
Certificate of
Deposit (CD)*
Series I U.S.
Savings Bond
Rate of Return .17% .53% .74%
Annual Fees $0 $0 $0
Minimum to Open $100 $1,000 $50
Rate Fixed No Yes Adjusts bi-annually
Minimum Holding
Period
None 1 year 1 year
Early Redemption
Penalty / Forfeiture
None
All interest earned
to withdrawal date
3 months interest
(redemptions within 5
years of purchase)
ChexSystems Review Yes Yes No
May Buy as a Gift No No Yes
*Source: National Average rates, www.bankrate.com

22. 22
And Another Quiz
Which of the following are true about Series I
U.S. Savings Bonds:
A. They pay a competitive interest rate (.74% currently).
B. They can be purchased for as little as $50.
C. They can only be redeemed where they were purchased.
D. They can be purchased as gifts for anyone else – all you
need is the gift recipient's name.

23. 23
And Another Quiz
Which of the following are true about Series I
U.S. Savings Bonds:
A. They pay a competitive interest rate (.74% currently).
B. They can be purchased for as little as $50.
C. They can only be redeemed where they were purchased.
D. They can be purchased as gifts for anyone else – all you
need is the gift recipient's name.
All of these statements are true except letter C.
U.S. Savings Bonds can be redeemed at most banks and
credit unions nationwide, not just where they were
purchased.

24. 24
Yet Another Quiz
How long must savings bonds be held before
they may be redeemed?
A. 6 months
B. 12 months
C. 5 years
D. They may be redeemed any time

25. 25
Yet Another Quiz
How long must savings bonds be held before
they may be redeemed?
A. 6 months
B. 12 months
C. 5 years
D. They may be redeemed any time
U.S. Savings Bonds must be held for at least 12
months before they may be redeemed.
Bond buyers should understand that they can not
access funds saved in bonds for one year after
purchase.

26. 26
Finding: People Want to Save
 LMI tax clients value saving
● 49-63% of buyers saved part of
refund in the past
● 48% of decliners
 Saving is a growing concern

27. 27
Finding: People Like Savings Bonds
 Pleased with bond purchase
 Familiar with bonds
● 65% of tax clients “familiar” (vs.
32% for IRAs)
● 63% of tax clients had bought bond,
received bond as gift or known
someone who has owned

28. 28
Finding: Who Saves
 Demographics
● Parents: 70-75% of buyers; grandparents: 4-15%
● Gender: 79% female
● Age: ~ 40 years, same as sample
● Income: average AGI of buyers ~ $20k
● Ethnicity: African American over represented among buyers;
Hispanic slightly under
 Other
● Large tax refund ($3.4k for buyers vs. $1.7k)
● First time savers: as high as 50%

29. 29
Finding: Why People Save
 Who: for kids & grandkids
● 70%+ of buyers bought for others
● 59% of buyers “I want to put something
away for my kid’s future”
 What: for education, retirement
● Children / family (27%), Education (23%),
Retirement (18%)
 Time horizon: long-term
● 2/3rds still saved after 3 years (in line
with national average)

30. 30
Finding: How People Decide to Save
 When: at “point of sale”
● ~50% report deciding to save at tax site
 How: human contact
■ “learned about option to buy bonds today…”
● 79%+ when someone talked to me
● 12% from brochure or poster
● 20% before coming to tax site

31. 31
Presenting Savings
Consider
■ Saving requires many tax
clients to take a “leap of faith”
● What if they need the money
later? Or their savings
disappear?
■ Clients generally trust you,
their tax preparer or other
VITA staff
■ You are there at the key
moment – when the refund
amount is clear
As the face of any savings
offer, your role is critical.
54% of bond purchasers
during the TS ‘07 pilot,
said they had no money
“saved or invested” prior
to buying bonds
As tax preparer, YOU
play a crucial role in a
client’s decision to
save for the future -
their own, or that of
their children or
grandchildren.

32. 32
Bond Order Process
How it Works
1. Client chooses to order bond in Part II
of Form 8888
2. Government mails bonds to clients
Your Role(s)
1. Explain opportunity - describe
savings bonds & chance to order at tax
site
2. Seek decision – ask client to decide if,
how much & for whom to order bonds
3. Process order – complete IRS
Form 8888 and enter name of
owner and co-owner(s) or
beneficiary and amount for bonds
Tax Preparers Matter
In a 2007 study, 41%
of tax clients who
saved part of their
refund decided to do so
only after meeting with
their tax preparer.

33. 33
Talking with Clients
Bonds are a good fit for…
■ Parents / guardians – bonds are
popular gifts for kids
● 68% of ’08 buyers bought bonds for others
■ First time savers – seeking a safe
way to start saving
● Bonds can be ordered for as little as $50
■ Long-term savers – who want a tool to
build savings over time
■ People on ChexSystemsSM
– who do
not qualify for a bank account
New Savers?
54% of tax clients who
bought savings bonds
in 2007 said they had
no money “saved or
invested” prior to
buying bonds.

34. 34
Conversation Starters
To raise the topic of saving, try
open-ended questions:
■ I see you have a savings bond brochure;
have you had a chance to look at it – what
do you think?
■ We have a new, free service this year to
help you save; have you heard about it –
what questions do you have?
■ Have you ever heard of US savings bonds?
What have you heard? –or- May I tell you
about them?
■ Do you recall how you used last year’s tax
refund? What are your plans this year?
When a client
speaks:
• Listen closely
• Look her in the eyes
• Never interrupt
• Consider repeating
back her key points

35. 35
Seeking A Decision
To help clients decide about
buying bonds:
■ Answer any questions; tactfully correct
any misinformation
■ Briefly re-state 2 or 3 relevant bond
features
● For example, “as I mentioned, bonds are
very safe, available for just $50, and earn .
74% right now.”
■ Then ask directly, “would you like to
order a savings bond today?”
■ If client declines
● Politely ask them why
● Correct any misunderstandings, ask again
Remember:
• Saving is hard & many
client’s won’t say “yes.”
• It is normal for about 1
in 10 to order bonds.
• Please keep asking
clients about bonds –
even if many say “no.”
• Always respect clients’
choices, as they know
what’s best for them.

36. 36
Possible Client Concerns
Concern: I can’t afford to save
■ Response
● Even a little is a start; you can begin for $50
● You just saved $150 in tax preparer fees - you
could save some of this amount
● How did you use last year’s refund? Buy a
$50 bond & you’ll still have some of your
refund next year
Concern: I don’t trust the government
■ Response
● 55 million Americans hold Savings Bonds
● Savings bonds have been sold since 1934
● You trust the gov’t to send your refund
● The same department that processes your
refund issues bonds
During 2007 & 2008
pilots, bond purchases
used, on average, 6% of
their refund to buy
savings bonds

37. 37
Client Concerns (more)
Concern: I’ll save by myself, my own way
■ Response
● It’s great you already have a plan to save!
● We are offering another saving option that
can save you time & a trip to the bank.
● Bonds are among the safest saving
options with very competitive returns.
● You can buy a bond for your kids, grand-
kids or others - bonds make great gifts.
● For most of us, if we don’t do it now we
may never do it.
● It’s free to split your refund and buy a
bond today.
Q: Does one pay
state or local
Income taxes on
Savings Bonds?
A: No.

38. 38
Another One
Which of the following are good ways to begin a
conversation about savings bonds with tax clients?
A. Do you want to buy a savings bond?
B. Have you heard about our new saving option this year? What
questions do you have?
C. Has anyone talked with you today about savings bonds? What
do you think about them?

39. 39
Another One
Which of the following are good ways to begin a
conversation about savings bonds with tax clients?
A. Do you want to buy a savings bond?
B. Have you heard about our new saving option this year? What
questions do you have?
C. Has anyone talked with you today about savings bonds? What
do you think about them?
Both letter B & C are good conversation starters.
They are open-ended, non-threatening and will help you learn
more about the client’s thoughts and feelings.

40. 40
Final Quiz
If a client says “I’m not interested” which of the
following is the best way to respond?
A. Fine. How do you want to receive your refund?
B. Why? Savings bonds are a great way to save and saving is
really important.
C. Okay, that’s fine. Thanks for considering it. It would help me to
understand why you aren’t interested – could you give me
some idea?

41. 41
Final Quiz
If a client says “I’m not interested” which of the
following is the best way to respond?
A. Fine. How do you want to receive your refund?
B. Why? Savings bonds are a great way to save and saving is
really important.
C. Okay, that’s fine. Thanks for considering it. It would help me to
understand why you aren’t interested – could you give me
some idea?
Letter C is the best response.
It accepts the client’s answer but keeps the conversation going
and provides an opportunity to identify and correct any
misunderstandings about savings bonds.

42. 42
PLEASE:
Ask every client who has a refund
■ If you don’t, who will?
■ Tax time may be a client’s only feasible
saving opportunity all year; it may be a
year before they have another chance.
■ It never hurts to ask; you can’t be sure
who will say yes unless you ask!
■ Everyone deserves a chance to decide
for themselves.
YOU can Encourage Savings Habits
Did you know?
81% of those who
bought savings bonds
in 2007 said they were
very happy with their
purchase!

43. 43
“Savings is hard. Bonds make it easy”
 Multiple dimensions:
● National vs. Local
● Offline vs. Online
 National media coverage of the campaign
 Potential national launch in D.C.
 Boston and Philadelphia are our “launch” or
“demo” cities
● Lots of outreach into the communities
(consumers, gatekeepers, tax preparers)
● Support of elected officials
● Local media coverage; PSAs, etc.
 Social media and campaign web site

44. 44
 Multiple delivery mechanisms for training,
marketing materials (if you’d like them)
 Social Media
■ Facebook, Twitter
■ Slide Share (for collaborative development,
comments)
 Download via web site
 Call to action (Join our campaign)
■ Let us know what assistance you need (marketing,
training)
Technical Assistance Delivery

45. 45
Join our Campaign

46. 46
Thank you!
For more information:
■ visit:Doorways to Dreams (D2D) Fund at
www.d2dfund.org
● Preeti Mehta
pmehta@d2dfund.org
(617)-541-9065
■ about Series I U.S. Savings Bonds, visit:
● The Bureau of Public Debt at
www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm