The average tax refund is about $3,000. Granted, this is not a ‘gift’ but money in your pocket nonetheless.
One way to make that money work for you is to put it in a Certificate of Deposit (CD). A CD is a great savings tool when you don’t need to access your money right away.
“CDs are good tools for people who get large lump sums of money (bonuses, tax refunds, inheritance, etc.) and want to keep that money for future purposes,” she said.
Why choose a CD over other options? The great benefits, of course!
“CDs generally earn a higher rate of return than a traditional savings account because you can’t access the funds in the account in the same manner,” she said. “They are great for people who have a hard time saving because you can’t access the money (other than at maturity) without a penalty.”
Two Rivers Bank & Trust has lucrative CD options with flexible terms and rates. These accounts require a minimum deposit of $1,000, which might be close to the amount of your tax return!
At Two Rivers, we want to help our neighbors achieve their saving goals.
“I had a customer who was saving to purchase a home in the ‘next few years,’” Anderson said.
“She admitted she wasn’t great at saving and needed a way to put money aside where she couldn’t access it easily.”
Anderson recommended we set up an auto-transfer from her checking account to a special savings account. When those savings accumulated, she opened an additional CD, and started building her balance again!
“She was able to save a little over $5,000 over the course of a year, and the interest that she earned seemed like an extra perk to her.”
If you’ve opened a savings account with Two Rivers, consider opening a 3 to 60-month CD with us, too! Select the term that best fits your needs. You can easily transfer some of the funds between Two Rivers accounts to earn higher interest with a CD – just remember the minimum requirement for your savings account!
We want you to have financial success! Contact us if you have any questions. We’re always happy to help our neighbors.