Cartwright Introduces Bill to Protect Paper Savings Bonds
Washington, DC – Today, Congressman Matt Cartwright re-introduced the bipartisan Save Access to a Valuable Investment Needed to Generate Savings (SAVINGS) Act. This bill would prohibit the Department of Treasury from discontinuing the Tax-Time Savings Bond Program unless a universally accessible non-electronic alternative was implemented.
The Department of Treasury has eliminated aspects of its savings bond program, including one that allowed employees to purchase savings bonds through payroll deductions. Currently, paper bonds can only be purchased through the Department of Treasury’s Tax-Time Savings Bond Program. Individuals can then use a portion of their federal tax refund to purchase savings bonds.
“Millions of Americans have saved and invested through the purchase of savings bonds,” said Rep. Cartwright. “Savings bonds are a powerful financial vehicle for families to build financial security.”
Savings bonds were purchased over 230,000 times from 2010 through 2015, accumulating more than $120 million in savings for themselves and their loved ones. If the program is eliminated, Americans will only be able to purchase savings bonds online, restricting access for the 25% of Americans without home internet and the nearly 10 million Americans without bank accounts.
“Terminating this program would negatively impact many low-income families. All Americans deserve the opportunity to achieve financial security,” Rep. Cartwright said.
The SAVINGS Act is supported by Commonwealth; Financial Security Program – Aspen Institute; Center for Financial Services Innovation (CFSI); Center for Public Policy Priorities; Clarifi; Corporation for Enterprise Development (CFED); EARN; Even; Impact America; Just Harvest; Maryland CASH; Mobility Capital Finance (MoCaFi); MyPath; National League of Cities; Neighborhood Trust Financial Partners; and the Southern Bancorp Community Partners