1. Tax-Time Savings Bonds &
Form 8888
Training for
Tax Preparation Volunteers

2. 2
We Know That 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 – 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.

3. 3
Bonds Make it Easy
1. Funds to Save - $100 Billion is returned
to poor families each year
‣ Avg. of $1,680 per household, up to 20% of annual
income
2. Assistance – tax preparers serve as a
trusted adviser to promote saving
3. Convenience – bonds can be
purchased during tax prep process
without any extra steps or follow-up
Assistance and guidance
from a trusted tax
preparer is a critical to
helping tax clients save at
tax time.

4. 4
Purpose of This Presentation
1. Provide background on the Tax-Time
Savings Bond policy
2. Explain Series I Savings Bonds
3. Train you to promote and process Series
I Savings Bonds using Form 8888

5. 5
Highlights of the Policy
 Tax filers with refunds of at least $50 can purchase
Series I U.S. Savings Bonds on the tax return
 Use IRS Form 8888 to place order
 Filers may buy bonds for themselves and spouse if filing
jointly
 Filers may buy bonds for two other people as gifts
 Bonds are mailed in 3-5 weeks
 Must be purchased in multiples of $50
 $50 minimum, $5,000 maximum

6. 6
Policy is a Growing Success
0
10,000
20,000
30,000
40,000
50,000
2009 2010 2011
Number of People Impacted

7. 7
Pop Quiz
Which of the following are true about Series I U.S. Savings
Bonds:
A. They pay a competitive interest rate (1.94% 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.

8. 8
Pop Quiz
Which of the following are true about Series I U.S. Savings
Bonds:
A. They pay a competitive interest rate (1.94% 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.

9. 9
And 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

10. 10
And 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.

11. 11
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
11

12. 12
Who is on each bond?

13. 13
Main Features
 Safe – protected by U.S. Gov’t &
replaced if lost or stolen
 Accessible – buy for as little as $50
 Competitive – solid return
(1.94%), no fees
 Simple – sold at “face value” ($50
buys $50 bond), rate adjusts twice a
year
 Long-term – must be held for 1 year
 Portable – can redeem at most
banks and credit unions
 Q: How many
Americans
currently hold
Savings Bonds?
 A: 55 Million.
(That’s 1 in 6!)

14. 14
Savings Bonds as Gifts
Tax Clients can buy bonds for:
• Themselves
• And/or up to two other people
• e.g., kids, grandkids, spouses, nieces /
nephews, godchildren, etc.
Details
• Tax client needs only name of gift
recipient (no SSN)
• Tax client & gift recipient will be listed on
bond as co-owners
• Either party can redeem bond
In a 2008 study, 68% of
buyers purchased
savings bonds for
others, mostly children
& grandchildren
14

15. 15
Bonds vs. Savings Accounts vs. CDs
Typical Savings
Account*
Typical 1 Year
Certificate of
Deposit (CD)*
Series I U.S.
Savings Bond
Rate of Return 0.56% 0.80% 1.94%
Annual Fees $0 $0 $0
Minimum to Open $100 $1,000 $50
Requires Bank
Account
Yes Yes No
Need to be banked Yes Yes No
Chex Systems Review Yes Yes No
May Buy as a Gift No No Yes
*Source: National Average rates, www.bankrate.com

16. 16
Your Role as a Volunteer
1. Explain opportunity –
describe savings bonds & how
they work
2. Seek decision – ask client if he
or she wants to order bonds for
himself or someone else
3. Process order – complete IRS
Form 8888
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.

17. 17
Volunteer Materials
1. Form 8888 Script and Guide – gives
guidelines for what to say & how to process
Form 8888
2. FAQ – “Knowledge is Power”
3. Client’s Refund Summary – For client to fill
out while you process Form 8888

18. 18
Form 8888 Example
‣ Taylor Knowles is getting a $700 refund
‣ She wants to purchase:
‣ $400 worth of bonds for her daughter, Tania Knowles
‣ $100 worth of bonds for herself and to make grandson
Shawn a beneficiary
‣ Taylor wants the remainder of the refund to be
sent in the form of a check
How should Form 8888 be completed?

19. 19
$400 for
daughter Tania
$100 for self
Grandson as beneficiary
Remainder
Total Refund

20. 20
 Everyone deserves the opportunity to decide for
themselves.
 This may be a client’s best saving opportunity all year.
 You will get a lot of No’s, BUT you don’t know who will
say YES unless you ask!
 Respect everyone’s decision
Remember…

21. 21
The National Campaign
‣Goal: to increase low-income
taxpayer savings through
savings bonds
‣Social Media
‣ www.facebook.com/bondsmakeiteasy
‣ www.twitter.com/bondsmakeiteasy
‣ www.youtube.com/bondsmakeiteasy
‣Results to date
‣ More than 25% of 2010 bond
buyers bought again in 2011
‣ In 2011, 45,000 people impacted
by savings bonds
‣ Goal is 100,000 people in 2012!

22. 22
For more information:
‣ TreasuryDirect.gov – Official Information
‣ BondsMakeItEasy.org – Campaign website
‣ Preeti Mehta, pmehta@d2dfund.org, (617) 541-9065