Tips to Turn Tax Season into the Savings Season Capital One Bank offers the following tips for consumers on how they can boost their savings, whether it's making a savings plan for a tax refund or planning to set aside cash to pay taxes for next year:
- Pay yourself first. Use your refund to build your emergency fund so you're prepared for short-term needs that can come along unexpectedly. By depositing all or at least a portion of your refund into your savings account your building your savings cushion for the year.
- Strong rate, nice return. When reviewing your savings options choose the product with the best rate of return that matches your lifestyle and needs. The Capital One 360 Savings Account has a high rate plus extra savings tools, such as My Savings Goals, to keep you focused on your financial goals.
- Save regularly by setting up automatic transfers . One of the easiest ways to get into a routine of saving is to have funds automatically moved to your account every month or paycheck. Consider an online savings account that offers free transfers to and from existing accounts and set up automatic transfers in regular increments to ensure that money goes directly to savings. With an Automatic Savings Plan, such as that offered by Capital One 360, you can set it and forget it.
- Avoid unnecessary fees. When choosing a savings product, make sure that you're not losing your hard-earned cash to fees. Look for a product that offers no recurring monthly fees.
- Make the safest deposit. Make sure any savings tool you use is FDIC-insured.