3 Tips to Maximize Your Tax Refund This Year
As the tax season approaches, the anticipation of a tax refund presents a unique opportunity for Central Ohio residents. In 2023, the average refund reported by the IRS was $2,753, an amount that many Central Ohio households can use to improve their financial well-being. Instead of viewing a tax refund as a chance to purchase something big, consider it an opportunity to invest in your financial future. Whether you're saving for something significant like a house or car, funding education, or simply looking to improve your financial stability, using your tax refund wisely can set a strong foundation for future growth. This article will explore how you can leverage your tax refund to your advantage, focusing on long-term benefits rather than short-term purchases.
Want to estimate how much of a refund you may receive? Use KEMBA’s Tax 1040 calculator to get an idea of how much you may have to get started.
Tip 1 – Open a Certificate/CD
One of the most effective ways to grow your tax refund is by opening a Certificate, commonly known as a Certificate of Deposit (CD). Certificates offer a guaranteed return and often come with higher rates compared to traditional savings accounts. KEMBA Financial Credit Union offers terms ranging from 3 months to 7 years, allowing you to choose a timeline that best suits your savings goals. It's important to be aware of potential early withdrawal penalties, which can reduce the interest earned if funds are accessed before the term ends. You can estimate your potential returns with KEMBA's Certificate Calculator.
Tip 2 – Open a Money Market Account
For those seeking a balance between growth potential and accessibility, a Money Market account is an excellent choice. These accounts typically offer higher rates than standard savings accounts, while still providing access to your funds. Keep in mind that maintaining a minimum daily balance is often required to achieve the best rates and there are monthly withdrawal limitations. Money Market accounts combine the benefits of savings and checking accounts, making them a flexible option for growing your tax refund. Learn more about how a Money Market Account can work for you.
Tip 3 – Open an Ohio Homebuyer Plus Savings Account
If homeownership is in your future, consider the Ohio Homebuyer Plus Savings Program. It’s not just for new homebuyers but existing homeowners as well. Designed to assist with saving for a down payment or closing costs on a home in Ohio, this savings account offers higher-than-average rates to maximize your savings. With contribution limits ranging from $100 minimum to $100,000 maximum, it's an accessible and effective way to turn your tax refund into the foundation of your future home. Get started on your home buying journey with the Ohio Homebuyer Plus Savings Program at KEMBA.
You can easily estimate the down payment you will need for your next home purchase with KEMBA’s Home Loan Rates Calculator.
KEMBA Can Help You Plan For the Future
At KEMBA Financial Credit Union, we understand the importance of making the right financial moves today to secure a brighter financial future. Our range of growth products, including Certificates, Money Market accounts, and the Ohio Homebuyer Plus Savings Program, are safe and insured by the NCUA, ensuring your tax refund not only grows but is also protected.
To learn more about how you can maximize your tax refund, contact our dedicated member service team at 614.235.2395 and select Option 4. If you prefer personalized guidance, our team is ready to assist you at any of our local branches.