Atlantic Blog

If you’re expecting a tax refund this year, now is the best time to start planning how you’ll use that extra money. The best uses are to pare down debt and bulk up your savings. For instance, you can:

1. Open a Kasasa Cash Checking account about Kasasa Cash. It’s a free checking account that pays high dividends - earn 3.00% APY* on balances up to $10,000. To earn your rewards, just do the following transactions and activities in your Kasasa Cash account during each Monthly Qualification Cycle: Have at least one Direct Deposit, ACH Credit or ACH payment transaction in your Kasasa Account, have at least 12 debit card purchases post and settle and be enrolled in and agree to receive eStatements.
   
   
2. Open an emergency fund or add to your existing one. Aim to save enough to cover three to six months of expenses for those unexpected emergencies, like your car breaks down, your refrigerator dies, or you lose your job. Put your tax refund into a savings account opened specifically for these emergencies.
   
   
3. Fund or start an IRA about Individual Retirement Accounts. You can make up to a $5,500 contribution ($6,500 if you're 50 or older) to a Roth or a traditional individual retirement account (IRA) for tax year 2019.
   
   
4. Open a 529 plan. If you save for your child's college education in a 529 plan, you may get a tax deduction for your efforts. Visit SavingforCollege to find out more.
   
   
5. Take a class to improve your career prospects. If you think you lack certain skills to get ahead in your career, use the refund to purchase classes to learn those skills. You may be able to deduct those expenses from your taxes using the Lifetime Learning Credit.
   
   
6. Pay off debt. Use your refund to pay off any high-interest-rate credit card debt you may have. Try to pay off the debt in full so you can stop getting interest charges added to your balance every month.
   
   
7. Start a Holiday Club account. This account lets you save for holiday spending year-round so you don’t have to rely on credit cards in December. If your employer offers direct deposit, make saving even easier by having a set amount automatically deposited to this account.

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*APY=Annual Percentage Yield - accurate as of 01/01/2019. Rates may change after account is opened. Limit one Kasasa account type per Social Security Number. Account transactions and activities may take one or more days to post and settle to the account and all must do so during the Monthly Qualification Cycle in order to qualify for the account’s rewards. “Monthly Qualification Cycle” means a period beginning one (1) day prior to the first day of the current statement cycle through one (1) day prior to the close of the current statement cycle. The following criteria must be satisfied each month in order to earn the 3.00% APY* Cash dividend. At least 1 (One) Direct Deposit, ACH credit, or ACH payment transaction(s), a minimum of 12 POS debit card transactions, and receipt of electronic statements. Qualifying transactions must post to and settle to the Kasasa account during the monthly qualification cycle. ATM-processed transactions do not count towards qualifying debit card transactions. There are no recurring monthly service charges or fees to open or close these account(s). When Kasasa Cash qualifications are met each monthly qualification cycle: the monthly Average Balance up to $10,000 receive APY* of 3.00%; and average balances over $10,000 earn 0.50% dividend rate on the portion of the balance over $10,000, resulting in 3.00% – 0.73% APY* depending on the balance. If qualifications are not met in the monthly qualification cycle, all Kasasa Cash monthly average balances earn 0.05% APY. The advertised Kasasa Cash APY is based on compounding dividends. Actual dividend amount paid may be less than advertised Kasasa Cash APY. Dividends earned in Kasasa Cash are automatically transferred to Kasasa Saver each statement cycle and do not compound. The Kasasa Saver APYs may be less than Kasasa Cash APYs. Transfers between accounts do not count as qualifying transactions. Contact an Atlantic Federal Credit Union service representative for additional information, details, restrictions, processing limitations and enrollment instructions. Federally Insured by NCUA. Membership eligibility is required.