Savings Bonds instead of Tax Refund

[wnlbutterfly]

Apparently there will be a new box to check on your tax return allowing you to receive your refund as a savings bond instead of a check.

I work part time as a tax preparer and I honestly can't see anyone taking this option. I am not saying it is a bad idea, I am just saying that most of the people I work with already have the money spent before they even sign the tax forms. Those that would take the option are people that already do save and probably have accounts set up they would rather the money go into.

Just wondered what everyone thought about this. Is it something you would consider doing if you have a refund? Do you think it will get people saving?

[disneysteve]

I think you are right about the majority of people. Either they "need" that money or have better things to invest it in than savings bonds. Still, there is probably a segment of folks in the middle who, given an easy way to save, might take that route. That's not a bad thing. I don't really see a downside to this. If people get a bond instead of blowing the money frivolously, that's good.

[Broken Arrow]

By the way, what is the specifics of this savings bond?

[Marc Prosser]

Meant to Encourage Low Income People To save

First off, EE saving bonds are a great conservative long-term investment. However, I am not crazy about the tax time program because they only provide I bonds as an option.

Secondarily, there is no special benefit to using this program. The program is designed to encourage low-income families during the only time of year they are likely to have money not needed for expenses to save money.