1. Tax-Time Savings Bonds and Form 8888 December 2014

2. Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  WHAT ARE SERIES I SAVINGS BONDS?  PROMOTIING AND PROCESSING SERIES I SAVINGS BONDS USING FORM 8888

3. 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

4. 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

5. Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  WHAT ARE SERIES I SAVINGS BONDS?  PROMOTIING AND PROCESSING SERIES I SAVINGS BONDS USING FORM 8888

6. Here’s what you need to know about tax-time savings bonds HIGHLIGHTS OF THE POLICY  Tax filers with refunds of at least $50 can purchase Series I U.S. Savings Bonds during the tax filing process  Use IRS From 8888 to place order  Filers may buy bonds for two other people as gifts  Paper bonds are mailed in 3-5 weeks  $50 minimum, $5,000 maximum

7. John Q. Saver 123 Main Street Anywhere, WA 99000-0000 OR Jen Saver 123-45-6789 FRB-MPLS 04-15-07 2 :C000090007 :04 000000000000 01 2009 C000000000I An example of a paper savings bond Purchaser’s Social Security NumberIssue Date Owner’s Name & Address (Co-Owner Name, if any) Authentication Stamp

8. Who is on each bond denomination? Hellen Keller Dr. Hector P. Garcia Dr. Martin Luther King, Jr. Chief Joseph George C. Marshall Albert Einstein Marian Anderson Spark Matsunaga

9. Agenda  WHAT CHALLENGES ARE LMI CONSUMERS FACING?  WHAT ARE SERIES I SAVINGS BONDS?  PROMOTIING AND PROCESSING SERIES I SAVINGS BONDS USING FORM 8888

10. Why are bonds a good option? 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

11. 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

12. Processing the purchase 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?

13. Processing the purchase $400 for daughter Tania $100 for self Grandson as beneficiary Remainder Total Refund

14. Time to test your knowledge POP QUIZ! Which of the following are true about Series I U.S. 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

15. Time to test your knowledge AND… ANOTHER POP QUIZ!  6 months  12 months  5 years  They may be redeemed at any time How long must savings bonds be held before they may be redeemed?

16. You have the chance to help people make an important decision! REMEMBER  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  All tax filers deserve the opportunity to decide for themselves  This is likely a clients best saving opportunity all year  You will hear a lot of No’s, but the more you ask the more YES’s you’ll get!  Be respectful of everyone’s decision

17. Promoting bonds 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? ? ? ? ?

18. Promoting 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

19. Promoting 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

20. Thank you Kristen Tyrrell Innovation Manager D2D Fund Melissa Goldberg Innovation Strategist mgoldberg@d2dfund.org Andrea Vasquez Innovation Strategist avasquez@d2dfund.org Jerome Barnes Innovation Strategist jbarnes@d2dfund.org