Treasury Retail Program Savings Product Concept Quantitative Screening Research

OMB No. 1530-0023

Product Concept Test - Quantitative Study

Initial Draft

October 28, 2015

Objective

The goal of this study will be to prioritize potential product concepts toward 1) identifying products that will fill important savings needs among significant numbers of Americans, particularly those at financial risk and 2) illuminate product portfolios to fulfill Treasury’s vision and mission statements.

Methodology

• Online panel

• 2500 total respondents

• Translated and served in both English and Spanish

• 20 Minutes

Survey Outline

1. Screening and Demographics

2. Financial Attitudes and Product Ownership

3. Concept Testing

4. Treasury Ownership and Attitudes

5. Additional Demographics

Thank you for participating in this survey. Your input is extremely valuable to us. First we’d like to ask you a few questions just for classification and eligibility purposes.

I. SCREENING AND DEMOGRAPHICS

1. What is your gender?

1. Male

2. Female

2. What is your age? ______________ [TERMINATE 17 OR YOUNGER AND 71 OR OLDER]

3. In which state do you reside? ______________[DROPDOWN LIST OF STATES] [MUST RESIDE IN THE US TO CONTINUE]

4. Which of the following best describes how financial decisions are made in your household?

1. I make all the financial decisions alone.

2. I am involved equally in financial decisions with my spouse/partner.

3. I am slightly involved in the financial decisions in my household.

4. I am not involved in the financial decisions in my household. [TERMINATE]

5. Do you consider yourself to be of Hispanic, or Latino, origin?

1. Yes

2. No

[NOTE: RESPONDENTS WILL BE OFFERED THE OPTION TO COMPLETE THE SURVEY IN ENGLISH OR SPANISH]

6. Which of the following describe your race? [SELECT ALL THAT APPLY]

1. White

2. Black or African American

3. American Indian or Alaska Native

4. Asian

5. Native Hawaiian or Pacific Islander

7. Do you, or someone you share finances with, have any type of account at a bank or credit union?

1. Yes

2. No [QUALIFIES AS UNBANKED]

8. This question is about going to places other than a bank for financial services. Which of the following, if any, have you done in the past year? [RANDOMIZE]

1. Pawned an item at a pawn shop in order to get cash (this does not include selling an unwanted item at a pawn shop)

2. Gone to a place other than a bank (or ATM) to cash a check

3. Gone to a place other than a bank to purchase a money order

4. Taken out a payday loan or payday advance from some place other than a bank

5. Taken out a refund anticipation loan or used a tax preparation service in order to receive your tax refund faster than the IRS would provide it

6. Taken out an auto title loan using your car title to borrow money for a short period (this does not include a car loan that is used to purchase a vehicle)

7. Used a rent-to-own store to purchase furniture or appliances because you could not purchase them any other way

8. Used a place other than a bank to send money to family or friends living outside the U.S.

9. None of these

[QUALIFIES AS UNDERBANKED IF USED ONE OR MORE OF THE ABOVE]

II. FINANCIAL ATTITUDES AND PRODUCT OWNERSHIP

9. Below is a list of statements that may or may not describe your attitudes and behaviors regarding financial planning. For each statement please indicate whether you agree or disagree, using the following scale:

DROPDOWN SCALE

1. Strongly Disagree

2. Somewhat Disagree

3. Somewhat Agree

4. Strongly Agree

	Next few days	Next few months	Next few years
I set my financial goals for what I want to achieve with my money in…
I decide beforehand how my money will be used in the…
I actively consider the steps I need to take to stick to my budget in the…
I consult my budget to see how much money I have left for the…
I like to look to my budget for the … in order to get a better view of my spending in the future.
It makes me feel better to have my finances planned out in the…
I will be successful in saving in the…
I will be able to save in the…
I am confident that I will be able to save in the …

10. Which, if any, of the following financial products or accounts do you personally have? [DO NOT RANDOMIZE; SELECT ALL THAT APPLY]

1. A savings account at a bank or credit union

2. An employer sponsored retirement account (401(k) or similar)

3. Non-employer sponsored retirement account (IRA, Roth IRA or similar)

4. A money market account or certificate of deposit (CD)

5. An employer or government sponsored pension

6. A college savings or tuition plan (529 or similar)

7. A brokerage or investment account

8. A TreasuryDirect account

9. A myRA account

10. None of the above

11. There are many different reasons why individuals try to save or put away money. Looking at this list, rank order these savings needs in terms of personal importance. Assign a 1 next to your greatest savings need, a 2 next to your second greatest savings need, and so on. Assign “not applicable” if you are not currently focused on a particular savings need.

1. Purchase of a new home

2. Home repairs

3. Purchase of a new car

4. Personal education

5. Children’s education

6. Personal medical expenses

7. Children’s medical expenses

8. Family members’ (e.g., parent) medical expenses

9. Personal vacation

10. Retirement

11. Emergency expenses (e.g. car repairs, home repairs)

12. Other [INSERT]

12. The following is a list of reasons why individuals might enroll in a savings program (e.g., savings account, 401k). Please indicate how important it is to you personally that a savings program …

HORIZONTAL SCALE:

1. Not at all important

2. Not very important

3. Somewhat important

4. Very important

Savings product benefits [RANDOMIZE]

1. Keeps you from spending money

2. Helps you set goals for specific purposes

3. Provides you tips on financial management

4. Compares how you are doing with friends or other people

5. Helps you stay on budget

6. Helps you monitor your finances

7. Gives you the chance to win cash prizes for making deposits

8. Helps you to save for big purchases (e.g., home)

9. Helps you save for the short-term

10. Helps you save for the long-term

13. Overall, how satisfied are you with your ability to meet your current savings needs?

1. Not at all satisfied

2. Not very satisfied

3. Somewhat satisfied

4. Very satisfied

III. CONCEPT TESTING

You will now be presented with a number of ideas for savings products or solutions. Please review each one thinking about the challenges you personally face and the specific reasons you have a difficult time saving as much as you might like. Then provide your reaction to each one of these ideas by answering the questions below.

14. INSERT CONCEPT

Example concept: An online savings account that you can sign-up for in a number of different ways, that has no minimum deposit requirement, no fees and easy access for making withdrawals as needed.

Based on this description, how much do you think this savings solution would help you with your personal saving needs?

It would help me…

1. A lot with my saving needs

2. A fair amount

3. A little bit

4. Not much or not at all

If Q14=“a” or “b”, ASK Q14a: What is the main reason you say this type of account would help you?

If Q14=“c”, ASK Q14b: Why do you say this would only help you a little?

If Q14=“d” ASK Q14c: Why do you say this would not help you much or not at all?

[NEW SCREEN]

You will now be shown variations of the savings solutions concept that you just evaluated. Each one of the following savings solutions has a different set of features. Please evaluate each solution, thinking about how much it might help you with your personal saving needs—particularly when you are facing challenges or having a difficult time saving as much as you might like.

15. INSERT ALTERNATIVE CONCEPTS: A NUMBER OF DIFFERENT MOTIVATIONAL, PURPOSE AND FUNCTIONAL ALTERNATIVES WILL BE TESTED

Example concept: This savings account would have a special feature that makes you eligible to win a financial prize – like a lottery – every time you make a deposit to the account. It would be held in an online account that you can sign-up for in a number of different ways, that has no minimum deposit requirement, no fees and easy access for making withdrawals as needed.

Based on this description, how much do you think this savings solution would help you with your personal saving needs?

It would help me…

1. A lot with my saving needs

2. A fair amount

3. A little bit

4. Not much or not at all

If Q15=“a” or “b”, ASK Q15a: What is the main reason you say this type of account would help you?

If Q15=“c”, ASK Q15b: Why do you say this would only help you a little?

If Q15=“d” ASK Q15c: Why do you say this would not help you much or not at all?

[NEW SCREEN]

Here are some other ideas for ways to save money. Please look at each of these carefully because they are all different. Please evaluate each one the same way thinking about how much it might help you with your personal saving needs.

16. INSERT ADDITIONAL CONCEPTS: AN ADDITIONAL 3-5 CONCEPTS COVERING DIFFERENT TYPES OF ACCOUNTS – CARD-BASED, MULTI-PURPOSE, SINGLE-PURPOSE – WILL BE PRESENTED, BASED ON DETERMINATIONS OF THE WORK TEAM.

Example concept: This would be a card that you could purchase in a store that would have a dollar value associated with it so that you could give it to someone as a gift. (Possibly: This card could be linked to an online savings account that you and others could add money to as desired).

Based on this description, how much do you think this savings solution would help you with your personal saving needs?

It would help me…

1. A lot with my saving needs

2. A fair amount

3. A little bit

4. Not much or not at all

If Q16=“a” or “b”, ASK Q16a: What is the main reason you say this type of account would help you?

If Q16=“c”, ASK Q16b: Why do you say this would only help you a little?

If Q16=“d” ASK Q16c: Why do you say this would not help you much or not at all?

17. Here is the full list of ideas you have just evaluated. Which one of these ideas is the most appealing to you? [SELECT ONE CONCEPT]

    1. INSERT LIST OF FULL RANGE OF CONCEPTS

18. (FOR IDEA SELECTED) What makes this savings idea most appealing?

    1. [OPEN-ENDED RESPONSE]

19. The following is a list of features that savings products can offer. When thinking about the challenges you personally face and the specific reasons you have a difficult time saving as much as you might like, to what extent would each of these features be a negative or a positive thing for you when considering a new savings product?

Negative Positive

-3 -2 -1 0 +1 +2 +3

Savings product features [RANDOMIZE]

1. No fees

2. No minimum deposit

3. Minimum deposit of $5

4. Limited withdrawals in a certain period of time

5. Unlimited withdrawals

6. Ability to access via a pre-paid card

7. Ability to access through a cellphone or mobile device

8. Low return but will not lose principal (the amount you invested)

9. Access all account information online

10. High interest rate but some risk of losing principal (the amount you invested)

11. Provides text message tips for saving

12. U.S. government savings product

13. Tax benefit on savings toward a specific purpose such as college, medical expenses or a first home

14. Ability to purchase saving product as a gift for others

15. Ability to receive a savings product as a gift from others

16. Automatic deposit from paycheck (direct deposit)

17. Ability to make deposits at retail stores

18. Ability to share savings progress with family and friends

19. Ability to withdraw for pre-approved good debt

20. Ability to take pay holidays

20. This new saving solution could potentially be sponsored by or available from a wide range of non-profit institutions, financial or government institutions. How appropriate would you say are each of the following to provide [INSERT MOST APPEALING CONCEPT FROM Q17]

HORIZONTAL SCALE:

1. Not at all appropriate

2. Not very appropriate

3. Somewhat appropriate

4. Very appropriate

Savings product sponsors [RANDOMIZE]

1. Your community bank or credit union

2. A national bank or credit union

3. A financial advisor or investment agency

4. A social service agency

5. Your employer

6. Your local government

7. The US Treasury

8. The US government

21. Thinking about the product idea that you liked the most, does it make you more interested, less interested or equally interested if it was offered by the US Treasury?

1. More interested

2. Less interested

3. Equally interested

IV. TREASURY OWNERSHIP & ATTITUDES

22. Have you purchased a U.S. Savings Bond for yourself or for someone else in the past two years? [SELECT ALL THAT APPLY]

1. Myself

2. For someone else as a gift

3. Have not purchased a US Savings Bond

23. [ASK IF PURCHASED US SAVINGS BOND] Which of the following best describes the most recent US Savings Bond/s you purchased… [SELECT ONE]

1. A paper savings bond

2. An electronic savings bond purchased through Treasury Direct

3. Don’t know

24. Which, if any, of the following do you currently own? [SELECT ALL THAT APPLY]

1. Paper U.S. Savings Bonds

2. Electronic U.S. Savings Bonds

3. Treasury bills (T-bills), notes, bonds, or TIPS (Treasury Inflation-Protected Securities)

4. Floating rate notes or FRNs

V. ADDITIONAL DEMOGRAPHICS

The following questions are for classification purposes only.

25. What is the highest level of education you completed or the highest degree you received? [SELECT ONE]

1. Less than high school

2. Completed some high school

3. High school graduate or equivalent (e.g., GED)

4. Completed some college, but no degree

5. Associate's degree

6. College graduate (Bachelor’s degree)

7. Completed some graduate school, but no degree

8. Completed graduate school (e.g., M.S., M.D., Ph.D.)

26. Which one of the following best describes your current employment status? [SELECT ONE]

1. Employed full-time

2. Employed part-time or seasonally

3. Self-employed

4. Not employed, but looking for work

5. Not employed, and not looking for work

6. Retired

27. What was your total household income for before taxes last year? [SELECT ONE]

1. Under $15,000

2. $15,000 to $29,999

3. $30,000 to $39,999

4. $40,000 to $49,999

5. $50,000 to $59,999

6. $60,000 to $74,999

7. $75,000 to $99,999

8. $100,000 to $149,999

9. $150,000 to $199,999

10. $200,000 or more

11. Don’t know / Prefer not to say

28. How much would you estimate you currently have set aside in short-term savings i.e., any savings that are designated in an “emergency fund” that is easily accessible or intended to be spent within the next year or two? [SELECT ONE]

1. None

2. $1 to less than $500

3. $500 to less than $1,000

4. $1,000 to less than $2,500

5. $2,500 to less than $5,000

6. $5,000 to less than $10,000

7. $10,000 to less than $25,000

8. $25,000 to less than $50,000

9. $50,000 or more

10. Don’t know / Prefer not to say

29. Now, thinking of just long-term savings and investments – savings that are intended for use for more than two years in the future and longer term saving such as retirement savings in IRA or 401k type accounts, college savings accounts, and other savings designed to be held over a longer period of time such as long-term CDs or bonds. What would you estimate as the total amount of your long-term household savings? Please do not include short-term savings or the value of your home in this estimate if you own a home. [SELECT ONE]

1. None

2. $1 to less than $1,000

3. $1,000 to less than $5,000

4. $5,000 to less than $10,000

5. $10,000 to less than $25,000

6. $25,000 to less than $100,000

7. $100,000 to less than $200,000

8. $200,000 or more

9. Don’t know / Prefer not to say

30. Which of the following debts do you currently hold? [SELECT ALL THAT APPLY]

1. A mortgage

2. Student loans

3. Credit card debt

4. Health care debts

5. Other loans

31. Do you have children? [SELECT ONE]

1. Yes

2. No

3. Prefer not to answer

32. [ASK IF HAVE CHILDREN] Please indicate which age group(s) your children are in. Select all that apply. [SELECT ALL THAT APPLY]

1. Under 10 years old

2. 11 to 17 years old

3. 18 to 24 years old

4. 25 and over

5. Prefer not to answer

33. What is your marital status? [SELECT ONE]

1. Married

2. Living with partner

3. Single, never married

4. Divorced

5. Separated

6. Widowed

7. Prefer not to answer