Year twenty-seventeen has come and gone, and tax day is just around the corner. After punching in your time card it’s always nice to cash in last year’s tax return. If you’re expecting to receive a tax refund this year, you may be asking yourself “What should I do with my tax return?” This is an important question, but don’t sweat it! You have Yolo Federal on your side, and we’ll help you make smart choices when choosing how to use your tax return. Let’s get started!
- Do you have any high rate loans or credit card debt from another financial institution? If so, we recommend putting some of your return towards the loan with the highest rate. You may not have it all paid off right then and there, but this will loosen the reins on your funds throughout the year. It also could help reduce how much you pay on your loan at the end. Whatever is left over can be transferred to one of our low-rate credit cards. We have no balance transfer fees on all of our credit cards. We offer a fixed rate card, low rate card, and cash back rewards card with a super low introductory rate.
- Yolo Federal’s Wealth Management program, available through CUSO Financial Services, L.P., to see what your future could hold. Monaye is a licensed professional, trained to analyze your investment needs and help you develop a road-map to reaching your specific financial goals.
- Have you started investing in your children’s future? The Coverdell Education Savings Account is a great way to save big on education. When the time comes, you can use the savings for any qualified education expense, not just college. Any leftover funds can be transferred to another child’s education fund. Plus, grandma or grandpa, or aunts and uncles can chip in as well to help make the college dream come true for your kids.
- Save it! Holding onto your tax return in a savings account is one way you can guarantee you’ll be able to take that vacation you’ve been telling yourself to go on or save towards your dream home or car. If you’d just like to feel safe, you can tuck that return away for a rainy day. We don’t recommend adding your return to any old savings account. Why, you ask? Because with our Secondary Savings accounts you are not held to a minimum balance requirement or associated fees. You can open as many as many as you like, name each account for a specific purpose, and then divide your return amongst the things you’ve been dreaming of.
- Share a portion of your tax return with an organization you’re passionate about. There’s no better feeling like the one you get when you help out others. Not only does your contribution help an organization make a difference, but depending on the organization it could be tax deductible. At Yolo Federal, we believe community involvement is a fundamental part of our “people helping people” philosophy, so why not give back to your own community? There are numerous non-profit organizations in Yolo County that could use your support in making a local difference.
You work hard year after year and it’s always nice to receive a chunk of change after you file your taxes. Whether you choose to settle up some debt, save for the future, make a donation, or all of the above, know that Yolo Federal is here to help you achieve financial success and build wealth.