Make the most of your tax return with a CD
It’s tax season again! As a financial institution, our team members have heard all the most common tax questions. Questions like, “How much do you have to make to file taxes?” Which, by the way, varies depending on your filing status. Single filers need to make $15,750 or more, whereas married people filing separately only need to have made $5 or more. It’s laid out in detail on the IRS website.
But one of the most common questions we get is “What to do with my tax return?” Make no mistake; getting a solid chunk of money can be a game-changer, especially under a tight budget. To start your 2026 tax year off right, here are the best ways to make the most of your tax return.
Hit the reset button
If you’re behind on bills, catching up on missed payments is the best thing you can do right now. Your tax refund can give you a financial do-over so you can start fresh this spring without any ominous letters or phone calls. Think of all the money you’ll save on interest and late fees. Not to mention getting breathing room from the stress of knowing you’re behind on bills. Even if your tax return can’t cover all of them, it’s a solid investment in your financial and credit journey to pay off as much as you can.
Start a stash
Nearly one in four U.S. adults has no emergency savings account. Even when your head is above water, it can be hard to prioritize emergency savings. But your tax refund? Boom — instant safety net. Even having just $1,000 in your savings account can get you through everything from a tight month to a sudden crisis. Please note, if you’re behind on bills, it’s still better to pay those first, as the interest and fees will add up and eat away at your funds regardless. But if you’re at least caught up on bills, starting a rainy-day emergency account is a great step toward building wealth.
Work for yourself
If your goal is to be your own boss, this can be the boost or seed money you need to get started. Getting started can take the form of opening an LLC, getting product mockups, creating a website and more. Just be sure to research your new business endeavor before spending a dime. And, when it comes time to open an official business account, shop around for a business savings account that can earn you compounding interest, has low or no fees, no minimum balance and is otherwise designed for you to succeed.
Make the most of your tax return with a CD
If you want to live large, you gotta do what rich people do: invest. Outside of winning the lottery, the only way to become wealthy — and equally important, stay wealthy — is to make your money work for you. Passive income is the trending term for this. Essentially, you invest your money, sit back and reap the rewards. But investment, any investment, comes with risk. That’s why we recommend investing in a CD. CDs, also known as time deposit accounts, offer clear terms that minimize risk and allow you to grow your wealth over time. OCCU CD accounts offer annual percentage yields as high as 3%.
Dip your toe into investing. Open an OCCU CD today.
The smartest thing to do with your tax return
So, to sum it all up, the smartest thing you can do with your tax return is catch up on bills. If you’re already caught up, then use the funds to take steps toward financial stability and passive income as outlined above.
Remember, this is your year. And with a little financial savvy and a dash of luck, you’ll make the most of it!
