CU One News

What to do with your Tax Refund

3-10-08

While your adventurous side is wanting to spend that 2007 tax refund on a new toy, your more practical side wants you to weigh options that will help improve your financial future.

1. Clear away debt. Paying down your highest rate balances first can help you save substantial interest over time. Credit Union One offers a Share Secured Loan where you can hold your refund in a savings account (gaining interest) and borrow money against it and when the loan is paid off, you get your money back! Check to see if our Share Secured Loan rates are lower than your credit card rates!

2. Begin or add to an emergency account. Many financial experts recommend amassing at least three months’ worth of expenses to offset a monetary setback or unplanned major purchase. By contributing to a liquid fund such as a money market account, you’ll help avoid charging expenses and racking up debt. Credit Union One now offers direct deposit into ANY account including SAVINGS!

3. Invest long-term. If you have your debts under control and emergency cash on hand, the next best move may be to invest long-term for potentially higher return. You may want to leverage your investment even more with a tax-advantaged option, such as an IRA (individual retirement account). You can contribute up to $4000.00 per year into an IRA per tax year.

For more information about savings accounts, please contact a Credit Union One Representative at 405-557-0167. For a discount on online tax preperation, click on the link below.