Working Paper | HBS Working Paper Series | 2008

Just Keep My Money! Supporting Tax-time Savings with U.S. Savings Bonds

by Peter Tufano

Abstract

This paper reports the results of a 2007 experiment testing if 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 U.S. Savings Bonds with their tax refunds, augmenting the tax-site savings options offered by 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.

Keywords: Household; Income; Bonds; Investment; Personal Finance; Saving; Taxation; United States;

Language: English Format: Print 40 pages Read Now

Citation:

Tufano, Peter. "Just Keep My Money! Supporting Tax-time Savings with U.S. Savings Bonds." Harvard Business School Working Paper, No. 09-059, October 2008. (Revised August 2010.)

About the Author

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Peter Tufano
Sylvan C. Coleman Professor of Financial Management, Emeritus

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