Letters: Use tax refunds wisely

Dear Editor,

We’re currently in the midst of tax season. As people receive their refunds, they’re going to be looking for the best ways to spend them.

At Capital One Bank, we believe tax season is time to consider ways to boost savings, which can be achieved by making a savings plan for a tax refund or setting aside cash to pay next year’s taxes. Here are some things to consider:

1. Pay yourself first. If you’re eligible for a refund, start building your savings cushion for the year by depositing all or at least a portion of your refund into your savings.

2. Strong rate, nice return. When reviewing your savings options choose the product with the best rate of return that matches your lifestyle and needs. Some checking accounts are offering higher interest rates than even CD accounts, providing more flexibility and access to your funds than a CD would. Capital One Bank’s High Yield Checking account currently earns an interest rate that is five times the national average. The rate is guaranteed for one year.

3. Make saving automatic, easy and excuse-free. Don’t stop contributing to your savings after getting your refund. It’s always a good idea to get into a routine of putting aside money. One of the easiest ways is to have funds automatically moved to your account every month or paycheck. This is important if you need to set aside savings at the end of the year for taxes.

4. Make the safest deposit. Make sure any savings tool you use is FDIC-insured.

5. If you must spend, do it wisely. Reinvest refund money into your biggest piggy bank, your home. Some home repairs will help you financially in the long term, from more efficient windows that reduce monthly heating and cooling to taking advantage of the energy tax credit. Make your house a better home while saving on your next tax return.

Robert Naquin,

Tri-parish area president, Capital One Bank