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

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

3. But Saving is Hard
Q: How many
Americans currently hold
Challenges lower-income savers
Savings Bonds? face:
A: 55 Million.
(That’s 1 in 6!)
• Limited income – a minimum wage
worker makes $14K 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.

4. With Help, Anyone can Save
Tax Clients want to
Some Examples: Save invested in a US
$500
• In one matched saving test: In one study, 49%4%
Savings Bond at of
• 2,300 people saved $1.3MM - 2.2% of for 10 years will grow
VITA clients agreed:
“I wish that when I had
to $743.6
their income, an average of $550 cash, I was better
• Almost half lived below poverty level; 4 in disciplined & saved it
5 lived below 2x the poverty line rather than spent it.”
• 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

5. 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)

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
• What might help people save
some of these funds?

7. Tax Time Opportunity Assistance and
guidance from a
Key elements to foster saving: trusted tax preparer is
• Funds to Save - $100 billion is returned to a critical to helping tax
clients save at tax
poor families each year time
o On average, $1,680 per household
o 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

8. Something to Consider
For many lower-income clients Buying $100 U.S. Saving
Bonds every year for 20 years
• tax season is the only chance each year would leave a tax client with
when saving seems possible. over $3,000 – enough to fill
• a tax preparer may be the only person the gaps in a child’s college
scholarship.
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.

9. A Proposition
Did You Know?
How about a “Return to Thrift”?
• From 1917-1966, the
culture that supports saving YMCA and others
• more families with financial reserves sponsored “National Thrift
• emphasis on the future, planning Week,” complete with local
• “Thrift Captains”
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…

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

11. Another Quick Quiz
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!

12. Quick Quiz
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

13. Quick Quiz
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
Yes! Here’s an example…
1962 Form 1040A
With option to receive refund as U.S. Savings Bond

14. 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
o If beneficiary check box
• Enter amounts on RHS

15. U.S. Savings Bonds Overview
Series I U.S. Savings Bonds
U.S. Savings Bonds an “IOU” from the US Government:
have been a popular,
respected investment
• safe – principal protected by “full faith &
option for over 70 credit of U.S. government”
years. • accessible – buy for as little as $50
• smart – solid return (1.76%), 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

16. Important Bond Facts
Redemption (“cashing in”) Proceeds from Savings
• At most banks & credit unions Bonds are exempt from
• Requires valid ID federal tax if used for
secondary education
Minimum holding (check IRS Publication
• Must be held for 1 year 970 for details).
• If redeemed before 5 years, lose 3 months’
interest
Loss / theft replacement
• Complete Treasury Form PD F 4000 or Form
PD F 1048
• Get signature certification from bank
• Mail to Treasury

17. Savings Bonds as Gifts
In a 2008 study, 68% of
Tax Clients can buy bonds for: buyers purchased savings
• Themselves bonds for others, mostly
children & grandchildren
• 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)
• Client & gift recipient will be listed on bond
as co-owners
• Either party may redeem bond

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

19. Bond Features & Benefits
Feature Benefits
Competitive return (1.76% Reach saving goal sooner
currently)
No fees No fees to erode savings
Convenient Simple tax site order process saves time
Can buy for others Easy to give savings as a gift
Inflation protection Value not lost as prices rise
Loss & theft protection Savings are safe

20. Bonds vs. Savings Accounts or CDs
Savings Bonds: CD-like returns, no fees and a $50 minimum
Typical 1 Year Series I U.S.
Typical Savings
Certificate of Deposit Savings Bond
Account*
(CD)*
Rate of Return .51% .80% 1.76%
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
3 months interest
Early Redemption All interest earned to
None (redemptions within 5
Penalty / Forfeiture withdrawal date
years of purchase)
ChexSystems Review Yes Yes No
May Buy as a Gift No No Yes
*Source: National Average rates, www.bankrate.com

21. And Another Quiz
Which of the following are true about Series I U.S.
Savings Bonds:
A. They pay a competitive interest rate (1.76% 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.

22. And Another Quiz
Which of the following are true about Series I U.S.
Savings Bonds:
A. They pay a competitive interest rate (1.76% 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.

23. Yet Another Quiz
How long must savings bonds be held before
they may be redeemed?
1. 6 months
2. 12 months
3. 5 years
4. They may be redeemed any time

24. Yet Another Quiz
How long must savings bonds be held before
they may be redeemed?
1. 6 months
2. 12 months
3. 5 years
4. 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.

25. 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

26. 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

27. 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%

28. 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)

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

30. Presenting Savings
54% of bond purchasers
during the TS ‘07 pilot,
Consider
As taxthey had no money
said preparer, YOU play • Saving requires many tax clients to
a “saved role in a client’s
crucial or invested” prior take a “leap of faith”
to buying bonds
decision to save for the o What if they need the money later? Or
future - their own, or that their savings disappear?
of their children or
grandchildren.
• 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.

31. 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
Tax Preparers Matter much & for whom to order bonds
In a 2007 study, 41% of tax
clients who saved part of 3. Process order – complete IRS Form 8888
their refund decided to do and enter name of owner and co-owner(s)
so only after meeting with or beneficiary and amount for bonds
their tax preparer.

32. Talking with Clients
New Savers?
Bonds are a good fit for… 54% of tax clients who
bought savings bonds in
• Parents / guardians – bonds are popular gifts 2007 said they had no
for kids money “saved or invested”
o 68% of ’08 buyers bought bonds for others prior to buying bonds.
• First time savers – seeking a safe way to
start saving
o 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

33. Conversation Starters
When a client speaks:
To raise the topic of saving, try
open-ended questions: •
•
Listen closely
Look her in the eyes
• I see you have a savings bond brochure; have you • Never interrupt
had a chance to look at it – what do you think? • Consider repeating back
her key points
• 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?

34. Seeking A Decision
Remember: To help clients decide about
• Saving is hard & many
client’s won’t say “yes.” buying bonds:
• It is normal for about 1 in
10 to order bonds.
• Answer any questions; tactfully
• Please keep asking clients correct any misinformation
about bonds – even if • Briefly re-state 2 or 3 relevant bond
many say “no.”
• Always respect clients’ features
choices, as they know o For example, “as I mentioned,
what’s best for them.
bonds are very safe, available for
just $50, and earn 1.76% right
now.”
• Then ask directly, “would you like to
order a savings bond today?”
• If client declines
o Politely ask them why
o Correct any misunderstandings,
ask again

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

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

37. 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?

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?
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.

39. 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?

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?
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.

41. YOU can Encourage Savings Habits
Did you know?
81% of those who bought PLEASE:
savings bonds in 2007
said they were very
Ask every client who has a refund
happy with their • If you don’t, who will?
purchase! • 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.

42. “Savings is hard. Bonds make it easy”
• Multiple dimensions:
 National vs. Local
 Offline vs. Online
• 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

43. Training Content and Delivery
• One webinar / classroom Powerpoint presentation
 Why savings matters, savings bond features and how to present
savings at tax time
• Two video presentations:
 Role play video on how to offer / promote bonds to clients
 “Bond Stars” video – successful tips from star bond coordinators
• Role play script for class room training
• FAQs and Guides

44. Training Content and Delivery
• Available for download on:
 www.bondsmakeiteasy.org/taxpreparers/training
 Please download and e-mail to other sites / organizations interested in
training
• Available for viewing, sharing with others, and
downloading on Social Media sites:
 http://www.slideshare.net/bondsmakeiteasy
 http://www.scribd.com/bondsmakeiteasy
Please view, read, share, comment, download,
train!

45. Marketing / Communication materials
• All available on
http://www.bondsmakeiteasy.org/taxpreparers/materials
• Communications toolkit
• Outreach collateral
 Posters, flyers, buttons
• Point of Sale collateral (for tax sites)

46. Join our Campaign – offline
• Pledge to buy a bond in 2013
• Promote it at your tax sites
• Build awareness of the policy among your partners
and networks
o Include blurbs about the policy in your newsletters or e-
mail blasts
o Encourage public officials to publicize the new policy in
constituent communications
o Have public officials speak about the option
o Work with employers and employee unions to promote the
opportunity
o Distribute Marketing / collateral (FREE download on
www.bondsmakeiteasy.org/taxpreparers/materials

47. And Online
• “Like” BondsMakeitEasy on Facebook
o and share the campaign with your family, friends and
colleagues: www.facebook.com/bondsmakeiteasy
• “Follow” BondsMakeItEasy on Twitter
www.twitter.com/bondsmakeiteasy.twitt
• “View” and “Share” our videos on Youtube

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