3 Smart Ways to Use Your Tax Refund


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 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, and select products benefits call 1 800 347 7056. Or visit them at AAA.com/Deposits

Discover Bank, Member FDIC