Tips, advice, and the latest news from the savings world.
January 13, 2011
Saving is hard, we know. But we also know that there’s a way to make it easier. Tax time is an exciting opportunity for all tax filers to save a portion of their refunds in a competitive, safe, and trusted product: a Series I U.S. Savings Bond.
How do Tax Time Bonds make saving easier?
- You don’t need a bank account.
- You only need $50 to get started. Choose to save as little as $50 of your tax refund with a bond.
- U.S. Series I Savings Bonds are a competitive saving product. The current interest rate is 1.76.
- Tax Time Bonds are marked for inflation, which means you never get back less than you put in.
- Tax time makes it simple. Just choose the amount you want to save and you’ll receive your bonds in the mail.
- You earn interest right away. Your money starts growing immediately.
- Bonds are safe. U.S. Series I Savings Bonds will never lose value and are backed by the U.S. Government.
- Bonds have no fees. There are no fees to buy or cash in your bond.
- Gift savings to your loved ones. Bonds can be purchased in someone else’s name – so you can help jumpstart the savings and dreams of the people you care about.
Learn more about Tax Time Savings Bonds, Form 8888, and how they can help prepare you for the future at www.bondsmakeiteasy.org or by texting DREAMS to 41411 (text FACIL to 41411 for Spanish).
January 11, 2011
By Katie Bryan, America Saves Communications Manager
Here’s an easy resolution to help you save more in 2012.
Increase the amount you save towards retirement by 1%.
Saving 5%? Bump it up to 6%. Saving nothing? Start small by putting 1% away. If you are already saving for retirement through your work, upping your retirement contribution is easy. Just visit your HR department and let them know you want to increase your retirement contribution. Want more information about saving at work? Check out this PowerPoint. Even if your employer doesn’t offer a retirement plan, you can still save for retirement, and get some tax benefits in the process, by putting money in an Individual Retirement Account (IRA).
Why 1% is a Great Number
- You probably won't notice a 1% smaller paycheck.
- You'd be surprised the difference a 1% increase can make in the long run. For example, a 30-year-old who saves 6 percent of a $50,000 salary, or $3,000 a year, will have nearly $840,000 banked by the time she has to start taking funds from her 401(k) at age 70½. (This assumes an 8 percent annual growth rate.) If she boosted her yearly contribution by just $500 she'd have nearly $980,000. That's a difference of nearly $140,000.
Want to run your own numbers to see how much a 1% difference would make for you? Visit the Ballpark Estimator.
Have we inspired you to increase your retirement savings by 1%? Let us know on our Facebook page.