What are we doing with our Tax Refunds?

[Squirtle]

Last year I got a great amount of money for my refund, and I blew most of it on a bunch of stuff that this year I don't even care about. I just got my tax refund yesterday and I want to do something smart with it. I was thinking of taking a majority of it and opening a savings account, and I was told to do it with a credit union as opposed to my bank (Chase). Can anyone tell me why a credit union is better?

 

[mannyrs13]

I think it's because of higher interest. Online banks pay higher interest too. I have an account with Ally Bank. There's a few others.

As long as you use your refund wisely and not foolishly. I sent mine to my car note to get it paid off faster. I have a friend who was telling me earlier today that he planned on getting a tattoo with his, and he's on a worse financial level than me.

Good that you smartened up this year. Look into a high interest savings account and consider putting some in a Roth account too.

 

[outordinary]

Well credit unions usually care more about you, although I'd rather put the money in an ira than in the bank.

 

[hashmander]

*gets a tax bill*

 

[MindOverMatter]

1/3 into an investment ( not sure what yet) 1/3 bills ( playing catch up ) 1/3 home improvements

 

[ORDER_66]

Starting my own business!!!

Aaron Jackson Shopify coming soon!!!

 

[Squirtle]

If I wanted to open a CD and it says .10% annual yield what exactly does that mean? Lets say I put 3000 in it and it has a .20% how much would i be making? .20% of 3000?

 

[MarcMan]

If I wanted to open a CD and it says .10% annual yield what exactly does that mean? Lets say I put 3000 in it and it has a .20% how much would i be making? .20% of 3000?

.10%???

Are you sure that's the annual yield and not the monthly yield? That feels incredibly low, even for a CD.

To answer your question, and assuming your CD compounds daily (the most generous assumption) you're looking at roughly $3,003 principal at the end of the year. Now if that .10% is a monthly number, and your annual return is actually 1.2% compounded daily, that will have you around $3036 in principal at the end of the year. You'd be better off putting your money in a different investment vehicle than locking up your capital for either of those rates imho.

 

[Geek Nasty]

I might get myself something small, but I'm focused on getting all my debts paid off. I'd be living like a king if it wasn't for debt.

 

[Wink Beaufield]

Pay off my car.

fukk having a car note.

 

[Vonte3000]

*gets a tax bill*

Damn man sorry

 

[iFightSeagullsForBread]

Hopefully putting it with my savings to put a down payment on a POS condo

 

[ORDER_66]

Last year I got a great amount of money for my refund, and I blew most of it on a bunch of stuff that this year I don't even care about. I just got my tax refund yesterday and I want to do something smart with it. I was thinking of taking a majority of it and opening a savings account, and I was told to do it with a credit union as opposed to my bank (Chase). Can anyone tell me why a credit union is better?

stocks and investing... at least get some sort of return financially with your investment.

 

[Squirtle]

stocks and investing... at least get some sort of return financially with your investment.

I know nothing about stocks and I feel like I'd lose my money quick.

 

[ProfessionallyTrill]

Child support took the little bit I was getting