Just Keep My Money! Supporting Tax-Time Savings with US Savings Bonds
University of Oxford - Said Business School; National Bureau of Economic Research (NBER); University of Oxford - Said Business School
August 13, 2010
Harvard Business School Finance Working Paper No. 09-059
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.
Number of Pages in PDF File: 40
Date posted: October 16, 2008 ; Last revised: August 17, 2010