Tax-Time Savings Bonds and Form 8888 December 2014

Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  HOW DO SAVINGS BONDS MAKE IT EASY TO SAVE?  WHY IS TAX TIME A GOOD TIME TO BUY BONDS?  HOW DO I ENCOURAGE TAX FILERS TO PURCHASE BONDS?  WHAT DO BONDS HAVE TO DO WITH SAVEYOURREFUND?

We know that saving is hard CHALLENGES LOW-INCOME SAVERS FACE  Limited income – a minimum wage worker makes $15,000 a year  Consumerism – pressure to buy is everywhere  Family & friends – often in need, creating pressure to share resources  Few opportunities – most people save with structures help (e.g. 401(k) plans), but low-income consumers get little or no such help

Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  HOW DO SAVINGS BONDS MAKE IT EASY TO SAVE?  WHY IS TAX TIME A GOOD TIME TO BUY BONDS?  HOW DO I ENCOURAGE TAX FILERS TO PURCHASE BONDS?  WHAT DO BONDS HAVE TO DO WITH SAVEYOURREFUND?

Bonds are a safe and accessible way to save MAIN FEATURES OF SAVINGS BONDS  Safe – protected by the U.S. Government and replaceable if lost or stolen  Accessible – buy for as little as $50, and does not require a bank account  Competitive – solid return (1.48%) with no fees  Simple – sold at “face value” ($50 buys a $50 bond) and rate adjusts twice a year  Long-term – must be held for at least one year  Portable – can be redeemed at most banks and credit unions  Giftable – tax client needs only the name of gift recipients (up to 3), and either party can redeem the bond

Bonds are a safe and accessible way to save U.S. SERIES I SAVINGS BONDS U.S. Series I Savings Bonds are debt securities issued by the government to help pay for the government’s borrowing needs. They are considered one of the safest investments because they are backed by the full faith of the U.S. government.

John Q. Saver 123 Main Street Anywhere, WA OR Jen Saver FRB-MPLS :C : C I An example of a Series I Paper Savings Bond Purchaser’s Social Security NumberIssue Date Owner’s Name & Address (Co-Owner Name, if any) Authentication Stamp

Each bond denomination features a different historical figure Hellen Keller Dr. Hector P. Garcia Dr. Martin Luther King, Jr. Chief Joseph George C. Marshall Albert Einstein Marian Anderson Spark Matsunaga

It’s time to test your knowledge POP QUIZ! Which of the following are true about Tax Time Savings Bonds:  They pay a competitive interest rate (1.48% currently)  They can be purchased for as little as $50  They can only be redeemed where they were purchased  They can be purchased as gifts for anyone else – all you need is the gift recipient’s name

Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  HOW DO SAVINGS BONDS MAKE IT EASY TO SAVE?  WHY IS TAX TIME A GOOD TIME TO BUY BONDS?  HOW DO I ENCOURAGE TAX FILERS TO PURCHASE BONDS?  WHAT DO BONDS HAVE TO DO WITH SAVEYOURREFUND?

Bonds are a great savings tool for tax time BONDS MAKE IT EASY  Funds to Save - $300 Billion are awarded as federal refunds to over 110 million households  Assistance – tax preparers serve as trusted advisers to promote savings  Convenience – bonds can be purchased during tax filing process without any extra steps or follow-up

Form 8888 makes it easy to process bond purchases 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 wans the remainder of the refund to be sent in the form of a check How should Form 8888 be completed?

Form 8888 makes it easy to process bond purchases $400 for daughter Tania $100 for self Grandson as beneficiary Remainder Total Refund

Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  HOW DO SAVINGS BONDS MAKE IT EASY TO SAVE?  WHY IS TAX TIME A GOOD TIME TO BUY BONDS?  HOW DO I ENCOURAGE TAX FILERS TO PURCHASE BONDS?  WHAT DO BONDS HAVE TO DO WITH SAVEYOURREFUND?

Volunteers have an important role in promoting bonds YOUR ROLE AS A VOLUNTEER Describe savings bonds and how they work Ask client if he or she wants to order bonds for him/herself or someone else Complete Form 8888 Explain the opportunity1 Seek decision2 Process order3

You have the chance to help people make an important decision! REMEMBER  Be mindful of the fact that saving requires a “leap of faith”  Know that your clients generally trust you  Allow your tax filers to decide for themselves  Understand that this is likely a clients best saving opportunity all year  Expect a lot of No’s, but remember, the more you ask the more YES’s you’ll get!  Respect everyone’s decision

Promote bonds by starting a conversation about saving PRO TIPS 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? ? ? ? ?

Clients are likely to have questions and concerns about bonds PRO TIPS Concern: I can’t afford to save Response:  Even a little is a start; you can begin for $50  How did you use last year’s refund? Buy a $50 bond and you’ll still have some of your refund next year Concern: I don’t trust the government Response:  One in six Americans hold savings bonds  Savings bonds have been sold since 1934  You trust the government to send your refund  The same department that processes you refund issues bonds

Clients are likely to have questions and concerns about bonds PRO TIPS Concern: I 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 and 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 – they 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

Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  HOW DO SAVINGS BONDS MAKE IT EASY TO SAVE?  WHY IS TAX TIME A GOOD TIME TO BUY BONDS?  HOW DO I ENCOURAGE TAX FILERS TO PURCHASE BONDS?  WHAT DO BONDS HAVE TO DO WITH SAVEYOURREFUND?

Bonds are an eligible saving product for SaveYourRefund SaveYourRefund Savings Account and CDs IRASavings Bond and Treasury Direct Prepaid Card

Thank you Kristen Tyrrell Innovation Manager D2D Fund Melissa Goldberg Innovation Strategist Andrea Vasquez Innovation Strategist Jerome Barnes Innovation Strategist