Credit Card News: Your Money

Selected cards: 0
Advertising Disclosure
Experts Offer 5 Tips to Make the Best Use of Your Tax Refund
1 May
The coming of spring means warm breezes, flowering trees, spring vacations for schoolchildren and the promise of summer. But there’s another reason to celebrate spring: this is the time that many people receive tax refunds from the IRS.

The American Bankers Association (ABA) estimates that three-fourths of Americans got a refund from the government this year. And if you aren’t sure how to make the most of that refund, they offer five ideas for putting your tax refund to best use:

  1. Sock it away in savings. The ABA recommends that people keep three to six months of living expenses on hand in an emergency fund. If you don’t already have a high-yield savings account, now is a good time to open one. Use your tax refund to start that nest egg, or add it to your existing savings account. If something comes up, like illness, job loss, or a major home repair, you’ll be ready.

  2. Pay down debt. If you have credit card debt or high-interest loans, using your tax refund to pay off all or part of it is a smart move. There are two ways to go about this: you can start with the credit cards or loans that charge the highest interest, or you can knock out the smallest balances first. Either one will benefit you by helping you be debt-free faster.

  3. Contribute to your retirement fund. If your employer offers a 401(k) savings plan, you can add your tax refund to it and maximize your retirement savings. If not, you can set up an Individual Retirement Account (IRA) through your bank. The more you save now, the better off you’ll be when you retire.

  4. Bring your home ownership dream a little closer. Coming up with a down payment is the biggest hurdle most potential homebuyers face. If you’re looking to buy your own home sometime in the future, put your tax refund in a savings account dedicated to a future down payment. Make sure the down payment account offers the best return. Ask your bank which savings accounts offer the highest-yield interest.

  5. Upgrade your current home. If you already own your home, you can increase its value by using your tax refund. Make improvements that are a smart investment as well as increasing your quality of life, like upgrading your appliances to energy-efficient models.

Putting your tax refund to good use instead of blowing it on things that won’t last will pay off down the road, advised the ABA.

Read Also Related News

  • 21 Nov

    If you’re trying to plan for your financial future, you are probably trying to balance a few different priorities. Putting money aside for retirement, managing any investments you may have, and paying off debt are just a few of the...

  • 20 Jul

    A new report has good news and bad news about savings in America. The good news is that the percentage of people without an emergency savings fund is at a six-year low, down to 24% from 28% last year. The bad news is that nearly a quarter...

  • 28 Feb

    It’s an oft-quoted statistic that about half of all marriages end in divorce. But less talked about is the reason why many of these marriages fail. A new survey by credit bureau Experian sheds some light on the subject and reveals that...

looking for a Credit CARD:
Credit One Bank®: Credit One Bank® Platinum Visa® with Cash Back Rewards
Apply Online
Enjoy peace of mind with $0 Fraud Liability
Genesis FS Card Services: Milestone® Mastercard® with Free Choice of Card Image
Apply Online
Applying is quick and easy with our fast decision process
Horizon Card Services: Horizon Gold Credit Card
Apply Online
$500 Credit Limit. No Credit Check.
Credit One Bank®: Credit One Bank® Platinum Visa® for Rebuilding Credit
Apply Online
See if you Pre-Qualify without harming your credit score
Want to Read News From Other Categories?
Your Money
Card Issuers
  • 31 Jan

    American Express cardholders going through New York’s JFK airport are in for a treat in 2019. The credit card giant has announced that they will open the largest-yet location of their Centurion Lounge series of luxury airport lounges at JFK’s Terminal 4. This is...

Customer Questions

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • 0 Selected Cards Compare