Just Keep My Money! Supporting Tax-Time Savings with US Savings Bonds
American Economic Journal: Economic Policy
vol. 3,
no. 4, November 2011
(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. (JEL D14, H24)Citation
Tufano, Peter. 2011. "Just Keep My Money! Supporting Tax-Time Savings with US Savings Bonds." American Economic Journal: Economic Policy, 3 (4): 172-200. DOI: 10.1257/pol.3.4.172Additional Materials
JEL Classification
- D14 Personal Finance
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
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