Page 10 - AAA Every Day – AAA Hudson Valley – March/April 2021

FINANCIAL SERVICES
Tax season is upon us and that means the possibility of receiving a refund on your taxes from last year. If you do receive a tax refund this year, consider fighting the urge to splurge and instead use the money in one of these productive ways:
1.Pay Off Debts
Use your refund to tackle any existing debts you may have. It might not be the most fun use of your refund, but it’s always a smart financial move.
2.Start an Emergency Fund
Saving smarter means being prepared when the unexpected occurs. Consider opening an online savings account that’s designated for emergencies only, like sudden medical expenses or unexpected complications with your job. Start building now so
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when the hard times come, you’ll have 3 to 6 months’ worth of income set aside.
3.Prepare for Big Future Expenses with a CD
If you know you’ll need a new car in a few years or want to start saving now for a future home improvement, consider opening a certificate of deposit with your
tax refund. By setting the money aside now in a high- interest CD, you can ensure you have the funds available when your next big expense arrives.
Save smarter this year with help from Discover Bank
– the only bank that offers preferred member APYs on select products to AAA members. To learn more about savings, money market and CD accounts, call 800-347-7056. Or visit them at AAA.com\Deposits.
Discover Bank, Member FDIC
10 I MAR/APR 2021
3 Smart Ways to Use Your Tax Refund