Make the Most Out of Your Tax Refund
Good news! You’ve completed your tax returns and found out that you’ll be getting money back. Now the question is what is the best way to use this money? Buy something you want? How about something you need? Put it into savings? Invest it? We have some suggestions of ways you can make the most out of your refund.
Boost Your Savings
Do you have enough money to cover an emergency like a necessary house repair or to tide you over if you were in between jobs? Unexpected expenses are bound to crop up from time to time. Instead of scrambling when that happens, you can use your refund to build your emergency fund now so you can rest easy knowing you can manage financial disruptions down the road. Learn more about our savings options including our VIP Savings which has no monthly service fees and our Money Market accounts which allow you to earn higher dividends.
Pay Down Credit Card Debt
Getting a tax refund is a great opportunity to make a significant dent in your credit card debt. Even better, ditch your high rate cards and move your balances to a Landmark Rewards Visa or Cash Back Visa. You’ll enjoy 0% APR for the first six months on purchases and non-Landmark balance transfers. It’s a great way to save on interest and build some momentum for you to pay down more debt.
Put it Toward a Down Payment on a Car or Home
Getting ready to buy a new car or new home? Your tax refund can be a great way to increase your down payment. A larger down payment means you’ll have smaller monthly payments and pay less in interest over the course of the loan. Try our online calculators to test out how a bigger down payment will make a difference for you.
Invest in Your Retirement
The earlier you start saving for retirement, the better. By contributing more now, you’ll allow more time for compounding interest. Make sure you’re contributing enough to get the full amount of matching if your employer offers it through a 401(k) or 403(b) plan. Consider opening an Individual Retirement Account (IRA) through Landmark. Our IRAs are federally insured up to $250,000 by NCUA, which can give you peace of mind knowing your nest egg is safe.
Save for Your Child’s Education
If you feel overwhelmed thinking about the rising cost of college tuition, you can use your tax refund to start putting money aside for your child’s education. Landmark offers several options to grow your savings including VIP savings, money market or certificate accounts. You could also open a Coverdell Education Savings Account (ESA) to enjoy tax-deferred growth or explore the 529 college savings plans offered in your state (such as Edvest in Wisconsin).
Although it might be tempting to splurge on something fun like a new wardrobe or state-of-the-art TV, in the long run you’ll be glad you put your refund toward achieving your financial goals!