Grow Your Tax Refund with a Certificate - Genisys® Credit Union

triangle warning icon   Stay vigilant and protect your account. Genisys will never contact you to confirm account details.
Read more about fraud scams

Genisys Credit Union
Genisys® Credit Union Genisys® Credit Union Go to main content Login

Grow Your Tax Refund with a Certificate

on 3/6/2024

Woman with cell phone in hand looking at camera

As tax season rolls in, many people are looking forward to receiving a refund check. You might already have an idea of how you plan to spend it. But, while it can be fun to treat yourself, you also don’t want to lose sight of the many ways these funds can benefit you.

A tax refund can feel like a bonus, but it’s truly your money being given back to you by the government. Finding ways to use these funds to improve your financial situation should be a top priority. One such choice is to kickstart your savings journey by investing a portion of your refund into a share certificate account.

How Share Certificates Work

A share certificate account (commonly called a certificate of deposit) is a secure savings instrument offered by financial institutions, like the credit union. You deposit a specific amount of money for a set period (usually between 6 months and 5 years), during which time your funds earn dividends or interest at a fixed rate. When you open the account, you can select the term that works best for you and your financial goals. 

The Benefits of Share Certificate Accounts

Dependable: Certificates are known for their predictability and dependability, classifying them as a safe investment option - and an attractive choice for risk-averse savers. You’ll earn guaranteed returns that are not dependent on the current market, which tends to fluctuate.

Fixed Structure: The set-term and fixed-rate structure of certificates instills disciplined saving practices. Knowing that your funds are committed to growing for a set time deters making impulsive withdrawals. This way, you can allow your funds to mature to their maximum earning potential.

Secure: One of the biggest advantages of certificates is the security they offer. Just like your other accounts at the credit union, certificates are NCUA-insured up to at least $250,000. Since your funds are protected, this makes certificates a no-risk investment option. You can enjoy peace of mind knowing that your investment is safe, regardless of market fluctuations.

Higher Returns: Certificates tend to offer higher dividend or interest rates than traditional savings accounts. By locking in your funds for a set period, you can capitalize on these elevated yields, thus allowing your money to grow substantially more than it would in a standard savings account. These earnings will compound and significantly boost your savings over time.Ways to Use Your Tax Refund with a Certificate

Boost Your Emergency Fund: A robust savings plan is a crucial component to achieving financial stability. Maintaining adequate savings ensures you have a safety net to ease the blow of unexpected expenses by providing a financial buffer. Your savings are there to offer peace of mind in the face of emergencies like medical bills or car repairs. Putting your tax refund into a high-earning certificate account to maximize your yields can ensure funds are available when needed.

Plan for Future Goals: Having sufficient savings plays a pivotal role in ensuring you can achieve your long-term financial goals. Whether you’re saving to buy a home, start your own business, or plan for retirement, your savings accounts help you accumulate the necessary funds to turn your goals into reality. By placing your tax refund into a share certificate account, your savings will earn more and put you closer to achieving your financial goals. 

Additional Thoughts:

Consider Your Long-Term Financial Goals 

When using your tax return to open a share certificate, aligning your savings strategy with your long-term financial goals is essential. Consider the duration of the certificate term based on when you anticipate needing the funds. Doing so will ensure that your savings plan complements your broader financial objectives. 

Diversify Your Savings Strategies 

You’ve heard the phrase, “Don’t put all your eggs in one basket.” The same principle applies to saving and investing. While certificates offer security, stability, and higher earning yields, it’s necessary to include other investment vehicles in your long-term savings strategy. Diversification ensures a well-rounded financial plan and enhances the resilience of your overall portfolio. 

Investing a portion of your tax refund into a share certificate account can be a wise strategic move for your financial future. Between the security, stability, and higher savings yields of certificates, your savings plan is sure to benefit. 

If you want to learn more about share certificates, our rates or are ready to open your account, we’re here to help. Please stop by any of our convenient branch locations or call 248-322-9800 extension 5. 



© Genisys Credit Union and, 2024. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited.  Excerpts and links may be used, provided that full and clear credit is given to Genisys Credit Union and with appropriate and specific direction to the original content.

Share: Share on Facebook Share on Twitter Share on Google+

« Return to "Genisys Blog"
Go to main navigation