Just Keep My Money! Supporting Tax-Time Savings with US Savings Bonds

Tufano, Peter (2011) Just Keep My Money! Supporting Tax-Time Savings with US Savings Bonds. American Economic Journal: Economic Policy, 3 (4). pp. 172-200.

Abstract

This paper reports the results of a 2007 experiment testing whether specific process simplification can foster increased take-up rates for savings products, particularly by low-to-moderate income (LMI) households. Tax refund recipients at certain H&R Block tax preparation offices were given the option to purchase US Savings Bonds with their tax refunds, augmenting the tax-site savings options offered by H&R Block. Those who received the savings bond offer were substantially more likely to purchase a savings product on-site than those who didn't, even after controlling for client demographics. Much of this take-up was directed at intra-family gifting, or asset building on behalf of children.

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