As much as we may not want to face it, we are coming to the point in the year where we begin to look over tax information as we prepare to get our taxes in by the April 15 deadline. On the other hand, there is a silver lining in the stressful tax season: your tax return.
Investing your tax return this year could help you afford that dream vacation you’ve been wanting to take!
A lot of people use this extra monetary boost to help with their spring home improvement projects or expenses. However, if you feel like you have enough saved up funds in your checking and savings accounts, another option would be to put this year’s tax return into a certificate of deposit, or CD.
A CD allows you to save money for the future at a significantly higher interest rate than your regular savings account. This allows your money to grow at a faster rate over the time period of the CD. An excellent investment resource, a CD poses less financial risk than playing the stock market, never loses principal or interest and is insured by the FDIC.
Not only do CDs grow faster than normal savings accounts and have low financial risk, but they are also flexible after the maturity date. You can withdraw your money completely, re-invest the entire lump sum or re-invest the interest your CD earned. The choice is up to you.
In this volatile economic climate, putting your money in an up-and-down stock market is not always safe. Come speak with the financial experts at Northeast Security Bank to learn about putting your money into an efficient and secure CD to save for the future. Tags: CDs, certificate of deposit, tax return, taxes