Individual savings increased more than household savings

One interesting pattern in the data is the difference between the effect on individually-held savings and investments and the effect on household savings and investments. Descriptively, average individual savings  are smaller than average household savings. However, the estimated effects of the unconditional cash on savings are larger and more significant at the individual level compared to the household level. 

The cash transfers were provided to the individual, not the household. The fact that there is a greater effect on savings at the individual level suggests that some recipients used the transfers to grow their personal savings rather than joint accounts. We find:

• Household savings in bank accounts increased by $792, a 12% increase relative to the control participant average.*
• Individual savings in bank accounts increased by $1048, a 24% increase compared to the average among control participants.**
• Household savings in investment accounts increased by $486, but the effect is not statistically significant.
• Individual savings in investment accounts increased by $756, a 62% increase relative to the control participant average.***

Effects are stronger for the lowest income recipients

Though subgroup analyses are exploratory and should be seen as offering insights rather than definite answers, we find stronger effects on individually-held savings for the lowest income recipients. For recipients whose household income was at or below the federal poverty threshold at the time of enrollment, individual savings in bank accounts increased by $1,242 across all time periods—an increase equivalent to 45% of the average savings among control participants.**** 

Whereas some observed effects decline toward the end of the program (see, for example, findings on financial well-being) this effect is largest in year three. In year three, the lowest income recipients’ individual savings in bank accounts increased significantly by $1,827, an amount that is 61% of the $2,999 average individual savings for control participants.*****

The impact on individual savings in investment accounts for the lowest income recipients follows the same trend. Across all time periods, recipients’ investments increased by $325—101% of the average of $323 among control participants.****** By the end of the program, the increase was $357, or 125% of the $287 control participant average.****