We’re right in the heart of tax season, and you early birds who did your taxes right after your W-2s arrived will soon be receiving your refund check, if you haven’t gotten it already.
It can be really tempting to spend that money on something “fun” like a new TV or the latest cell phone. But if you do, you’re in a very small minority. According to bankrate.com, here’s how Americans plan to spend their tax returns this year:
- 30% pay down debt
- 28% save or invest it
- 26% spend it on necessities
- 7% splurge on a vacation or shopping spree
- 9% something else/don’t know
And as fun as a TV or a cell phone might be, neither of those things can help you financially in the future. Something that can is a Bank5 Connect CD.
Okay, so your knee-jerk reaction is “Bo-ring!” but just entertain the notion for a moment. Let’s say you purchase an Investment CD. It has a 24-month term, a great rate, and unlike a lot of CDs out there, you can transfer money into it anytime you like. At the end of the term, think of all the stuff you could buy! Or you could always reinvest it. Either way, you’ll have more money down the road than you do now, and you can do a lot more with it.