DISCUSSION GUIDE/OUTLINE
Savings Product Development
Fall 2010
Moderator’s introduction.
Introduce self and KRC Research.
KRC is conducting these groups on behalf of the Department of the Treasury; but, KRC is an independent research firm and does not work for the Department of the Treasury.
Explain focus groups, set ground rules:
No right or wrong answers.
Everyone should voice their opinions during the group.
It’s okay to agree or disagree with each other.
Speak one at a time.
Turn off cell phones and pagers.
I’m just looking for your opinions about some of the things we’ll be talking about. Everything you say is confidential and your last names will not be associated with what you say. This discussion group is for research purposes only.
Inform participants we are audiotaping and videotaping the discussion and that observers are behind the one-way mirror.
Participants’ introduction.
Please go around the room and tell me your first name and some of the hobbies you like to do.
PICTURE SORT
Today’s discussion is going to be about different ways people save money. Before we get started I want to do a little exercise. You’ll notice on the sheet in front of you several pictures.
I want you to look through the pictures and write down the one picture you would choose that BEST captures how you feel about your ability to save money these days. Just put the letter of the picture in the box on your handout and write down briefly why you chose that picture – what feelings did it give you?
Please do not talk to each other while doing this exercise. We will discuss it when everyone is done.
What picture did you choose?
Why did you choose that picture?
What feelings did it give you about your ability to save money these days?
What other feelings come to mind when you think about your ability to save money these days?
Do you save money on a regular basis, like every time you get paid, by putting money aside, or do you save less frequently than that? Why do you save that way?
Is saving money important to you or not really? Why?
And what are some of the reasons that you might not be able to save money or as much money as you would like to? What are some of the things that prevent you from saving? (PROBE EXTENSIVELY.)
What goals do you generally have when you are saving money? (PROBE FOR SHORT AND LONG TERM GOALS) What are you generally saving for?
Probes: retirement, emergencies, large purchases, education for children, etc.
Next, we’re going to discuss several aspects of potential ways to save money and what’s most important to you personally.
First, where do you typically hear about opportunities to save money? (PROBE: Online, television, bank branches, word of mouth at work)
What sources do you trust the most? Why?
If we were looking to save $50/month, what types of things would be important to you when selecting how you save your money? (LIST ON EASEL)
What are the different ways you save money? (SHOW ON EASEL. GET TALLIES FOR EACH ITEM AND DISCUSS).
PROBES IF NEEDED:
Savings account at a bank or credit union.
Pre-paid cards.
Cash.
Stocks/mutual funds.
Employer sponsored payroll savings 401(k) or IRA.
Savings bonds.
Other
What are the advantages of saving money that way?
What are the disadvantages?
How important are each of the following to you when selecting a way to save money, be it a savings account at a bank, a pre-paid card, a Certificate of Deposit or CD, or other way to save money. Let’s use a scale from 1 to 10 where a 1 means not at all important and 10 means extremely important? (LIST ON EASEL)
The ability to have immediate access to your savings with little or no penalty for early withdrawal
Amount of interest (the amount of money your money will make for you)
Security of the amount or principle you put into your savings or investment
That your savings are government insured
How long you have to invest before withdrawing your funds (probe: 5 years? 1 year? 6 months or less?)
Being able to easily save, like through a payroll deduction or deductions from your federal or state income tax return (or EITC)
The ability to save in small increments (probe for how small the increments would need to be. $100? $50 $25? $10? Less?)
The ability to move your money into another savings tool like a CD at a bank or credit union or similar savings account.
DISCUSS REASONS FOR RATINGS OF EACH
Which of these did you find most important? Why?
Which were least important? Why?
Which of the different ways you can save money BEST fit with the things you find important (RESHOW LIST OF SAVINGS TOOLS ON EASEL.) How so?
How many of you have heard of a savings bond? (Show of hands)
What comes to mind when you hear the words “savings bond?” Why?
What are savings bonds for?
If you had to describe the type of person who buys savings bonds, who would it be? Why do you say that?
Can anyone describe how a savings bond works?
Where can you purchase savings bond?
Where or how can you cash them in?
Based on what you know, what are some the advantages of saving money through savings bonds? What are the disadvantages?
Based on what you know today, would you consider saving money by purchasing savings bonds? Why or why not?
Now I am going to hand you a description of savings bonds. I will read it aloud and you can follow along with me. Feel free to write on the handout. After I read it I will ask you questions about it.
Buying United States Savings Bonds is an option for saving money. When you buy a bond, you lend money to the federal government. The U.S. Treasury gives you an IOU—called a savings bond—either by mailing you a paper certificate or by placing a record in a personal electronic account that you can access anytime on the Internet. To make sure the government pays you correctly, your name, address, and social security number are recorded with this bond. While your money is on loan to the government, you earn interest. You must keep the bond for at least twelve months before you can cash it in. After that, you can cash it in anytime you want to. When you cash in your bond, you get your original money back plus the interest you earned. You cash in a paper savings bond by taking it to a bank. You cash in an electronic savings bond by accessing your Internet account and telling the government to send payment to your bank account.
Based on this description, what are some of the things you find appealing about savings bonds as a way to save money?
What do you think the benefits of saving money through savings bonds might be to you personally?
In what ways is this better than other ways to save money like a savings account at a bank? A pre-paid debit card? Cash?
In what ways is this not as appealing as other ways to save money?
What if you could only access your savings bond “account” online and there were no actual paper bonds? How appealing would that be to you?
[IF NOT APPEALING:] You could print your statement out from the Internet, would that make it more appealing?
Now I am going to show you some new ideas on a way to save money using U.S. Treasury Savings Bonds. These ideas are in the formative stage and do not currently exist. This is just to get your overall reaction to an idea.
SHOW EACH PRODUCT DESCRIPTION ON EASEL ONE AT A TIME
PROBE FOR EACH PRODUCT DESCRIPTION
How appealing is this as a way to save money?
How well does it fill your savings needs compared to other ways to save money? Why?
What do you like most about it?
What do you like least?
How likely would you be to use this as a way to save money? Why or why not?
AFTER ALL HAVE BEEN DISCUSSED
Which of these savings bonds products do you find most appealing? Why?
Which did you find least appealing? Why?
What are some reasons you might consider using one of these products to save money?
What are some of the reasons you might NOT consider using one of these products to save money?
SHOW WAYS TO PUT MONEY IN ACCOUNT ON EASEL
How appealing are these as ways to put money into your savings bond account?
Which would most encourage you to save money using savings bonds? Why?
Which do you find least useful? Why?
SHOW WAYS TO TAKE MONEY OUT OF ACCOUNT ON EASEL
How appealing are these as way to take money out of your account?
Which would you find most convenient?
Now let me get your reaction to a few other ideas about savings bonds.
Have you seen pre-paid cards and gift cards like Green Dot or Netspend that you can buy right off the rack at a Wal-Mart or Walgreens?
What if you could buy savings bonds like that as well? For example, there would be a card that looks like a debit card or pre-paid card that you could buy to save money on. If you bought a $25 savings bond card you would have $25 saved on that card. And when you want to save more money on the card, you could load additional money on the card for savings. It would work just like savings bonds work now, except instead of a paper bond you would have a Savings Bond Card.
How appealing is this as a way to save money?
How well does it fill your savings needs compared to other ways to save money? Why?
What do you like most about it?
What do you like least?
How likely would you be to use this as a way to save money? Why or why not?
What if you could buy savings bonds right from a merchant like a Wal-Mart or similar places you might shop when you pay for your purchases. For example, say you bought $32.50 in items and instead of getting you change back, you could put it into your savings bond account?
How appealing is this as a way to save money?
How well does it fill your savings needs compared to other ways to save money? Why?
What do you like most about it?
What do you like least?
How likely would you be to use this as a way to save money? Why or why not?
What if there was no physical card or paper involved but you and a Savings Bond account you could access online? How appealing would that be? Why?
Based on what you’ve heard tonight, what would be the most compelling reason to use savings bonds to save money? What aspects of what you have seen today fit with what we discussed earlier about saving money? (SHOW ATTRIBUTES ON EASEL.)
What other things could the U.S. Department of the Treasury do to make savings bonds an attractive way to save money for you? What would work best for your needs?
What would be the downside to using savings bonds to save for the future?
Simple Descriptions of Treasury Retail Securities Product Concepts
TreasuryDirect is available to people who want to set aside money for emergencies or other savings goals by buying securities directly from the U.S. Treasury. Treasury may soon offer new savings products, new ways to buy them, and new ways to get your money out when you need it.
Savings Certificate Account
A Treasury account that would let you save for emergencies or short-term goals. You would be able to put in and take out money when you want to. Your money would earn interest at a rate that changes occasionally.
Lottery bond
A Treasury account that would let you save for emergencies or short-term goals. You would be able to put in and take out money when you want to. Your money would not earn interest. Instead, you would have a chance to win cash prizes every month. Many of the prizes would be smaller (perhaps $25 to $100). A few prizes would be larger (perhaps $1,000 to $25,000); and one prize would be a jackpot.
Savings bond
Securities held in a Treasury account that would let you save for emergencies or short-term goals. You would be able to put in money any time. After a bond has been in the account for at least three months, you may cash out all or part of that bond any time you want to. Your money would earn interest at a rate that stays ahead of inflation. While this bond would be similar to a traditional paper savings bond, it would be an electronic bond rather than a paper bond.
Retirement bond
Securities held in a Treasury account that would let you put in money at any time. After you're 60 years old, you may take out money when you want to. Your money would earn interest at a rate that stays ahead of inflation. You wouldn't pay federal income tax on your interest earnings.
Ways to put money into your account
Treasury may offer some of the following ways to put money into your account: payroll deductions, income tax refunds, gift cards purchased at a local stores, mobile phones, bank accounts, or debit cards.
Ways to get your money out
Treasury may offer some of the following ways to get money out of your account: bank accounts, debit cards, or payment companies like PayPal.
**This Document Does Not Reflect Treasury Policy -- Pre-Decisional and Not for Distribution**
| File Type | application/msword |
| File Title | TreasuryDirect’s 2004 Customer Service Survey |
| Author | basharp |
| Last Modified By | basharp |
| File Modified | 2010-11-09 |
| File Created | 2010-11-09 |