What’s better than treating yourself? A strong financial foundation.
Completing your 2021 tax return feels good. Getting a refund feels even better. If you’re expecting a check from the federal government, you may already be browsing travel deals or those spring sales. But, if you set financial goals for yourself this year, your refund can help you take a significant step toward achieving them.
Here are some things to consider:
- Pay down your high-interest debt
Aspiring to be debt-free? Use your refund as a nice lump sum to put toward your high-interest credit card balance. Accelerate your progress by putting the money toward the principal, and make your monthly payment as planned.
- Build your emergency fund
Having money set aside for emergencies can prevent you from draining your savings if the unexpected happens. A healthy emergency fund is six months’ worth of your essential living expenses (i.e., rent, groceries, transportation, debt payments, etc.). If you haven’t saved that much yet, use your tax refund as a starting point. Then, maintain your progress by setting up automatic transfers from each paycheck into a special account that’s only for emergencies.
- Grow your savings
Whether you’re dreaming of a house, vacation or simply saving for the future, it’s always a good idea to build your wealth. By putting your tax refund into an account that earns interest, you can build your balance over time. Here are a couple of options:
- Certificate of Deposit (CD) accounts usually offer higher rates than savings accounts. To avoid early withdrawal penalties, you’ll need to keep the money in the CD for a specific period of time, giving you extra motivation not to spend it.
- Our Simple Savings account has an Annual Percentage Yield (APY) of 0.50%* on balances of $1 and over. It’s fully liquid so you can access your money when you need it while earning a little extra from the APY. Plus: it’s a completely digital account, so you can open yours up right from your couch.
Your Apple banker can help you with these options. Find your local branch to explore all of the options you have, so your tax refund can be the start of a stronger financial future.
*Annual Percentage Yield (APY) disclosed is effective as of March 29, 2022 and may be changed by the Bank at any time, including after account opening. For the Simple Savings Account, interest is earned on daily balances of $1 or more at these tiers: $1.00 - $49,999.99: 0.50% APY, $50,000.00 - $249,999.99: 0.50% APY, $250,000.00 - $999,999.99: 0.50% APY, $1,000,000.00 or more: 0.50% APY. There is no minimum amount required to open this account. Offer may be withdrawn at any time without prior notice.
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