A Final Word on Refunds

Spending an IRS refund in these ways is likely to leave you with remorse. Learn how to avoid this fate.
By Ollie Geiger

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a-final-word-on-refunds

As pleasant as it is to receive a refund, adjusting your tax withholding status to prevent future refunds has its advantages. No, you may not get a lump sum each spring, but investing the extra money you get in your paycheck in a high-yield savings account or certificate of deposit allows your funds to earn interest throughout the year.

Although deposit yields remain at historic lows, shopping around can still result in a reasonable return. And if you’ve already abstained from throwing a legendary party and spending an afternoon at the horse races, you deserve every penny you’re entitled to.

About Author
Ollie Geiger
Ollie Geiger is a freelance writer who writes about financial technology and consumer banking.