Helping Americans understand benefits of saving tax refunds, cash bonuses

January 18, 2024

U.S. Bank kicks off financial education campaign to help clients save in the New Year

Woman making calculations on mobile phone
About 75% of Americans will receive a tax refund this year. U.S. Bank is helping clients plan to make the most of their refund checks, with a focus on savings.

Over the last 12 months, interest rates on traditional savings products have been at their highest point in decades, yet according to Bankrate’s 2023 annual emergency savings report, only 19% of Americans said they contributed to their savings. At the same time, one in five Americans reported having no emergency savings at all

To help change that, U.S. Bank is kicking off the New Year with a focus on helping clients understand the importance of savings and how it is more accessible than ever – ahead of a time when many consumers will see an influx of cash from IRS tax refunds or annual bonuses.

“We are seeing emergency funds and savings accounts sitting at their lowest levels post-pandemic, in part due to inflation and the post-COVID spending surge on items like dream vacations and high-end purchases,” said Arijit Roy, head of consumer segment and solutions at U.S. Bank. “But the good news is that, given interest rates on savings products, there has never been a better time to be a saver.”

Roy recently sat down to talk about how U.S. Bank is working to help clients take advantage of one of the best environments for savings in recent memory.

How is U.S. Bank helping create more savers this year?

We have kicked off a series of articles on Financial IQ to educate clients around the importance of savings with expert tips on planning for tax refunds and annual bonuses.

Our online Tax Resource Center is also providing access to forms and statements, tools and tips, and answers to common tax questions.

We’ve also dedicated resources to help our branch and call center bankers educate clients and prospects about how to grow their money in products like Certificates of Deposit (CDs) and Money Market Accounts (MMAs).

We know that for many clients, a tax refund or an annual bonus is the largest check or deposit they will see in the year. We want to help more people be strategic with those dollars.

How can financial products help grow your savings?

Products like CDs and MMAs earn an Annual Percentage Yield (APY) that is correlated to interest rates set by the Federal Reserve. This means that when interest rates are high, putting money aside into a CD or MMA may provide a higher return than a traditional savings account.

The options to save today look a lot different than they did even just two years ago. It’s an exciting time to be a saver, whether you are just starting out or want to make your emergency fund grow.

You can learn more about CDs and MMAs as a savings strategy on Financial IQ.  

How is U.S. Bank making it easier to save?

Access to savings-based products continues to expand to clients outside of our traditional 26 branch network states. Last spring, CDs became available in all 50 states and MMAs will be available in all states early this year.

And making it easier than ever before to bank when, where and how you like are award-winning digital tools, including the No. 1 rated U.S. Bank Mobile App and online banking capabilities (according to industry benchmarking firm Keynova).

Through these digital channels, clients and non-clients can quickly open new deposit accounts, apply for a mortgage loan or home equity line of credit, or apply for and receive a personal loan in minutes and more.

In addition, clients can share their screen and get step-by-step guidance from their local banker via the mobile app and online banking through an industry-leading technology called cobrowse.

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