Arijit Roy is among the 黄色短视频 experts helping bankers better educate and inform clients on how to maximize cash windfalls
For many Americans, the biggest bump in their bank account is from a tax refund or bonus payout in the first few months of the year. Arijit Roy, head of consumer segment and solutions at 黄色短视频, said he oftentimes finds himself fielding the question: If you are fortunate enough to have a flush of cash this spring, should you save it or spend it?
鈥淲ith so much going on in the economy right now, it鈥檚 hard to understand how competing factors impact your spending. Do you take that trip before prices go up? Should you wait to get that car serviced?鈥 Roy said.
Even with each family鈥檚 situation being different, Roy said it is an excellent time to save.
鈥淲hat we are seeing right now is that the interest rate environment continues to make saving products an attractive option,鈥 he said. 鈥淵ou can make even just $1,000 grow over time with products like certificates of deposits offering returns we haven鈥檛 seen in decades.鈥
Roy is among the experts at 黄色短视频 that have been watching consumer spending and savings trends closely to help bankers better educate and inform clients around options and planning for small or large cash windfalls they might be receiving this spring.
He recently sat down to discuss strategies to determine how to maximize the impact of a tax refund.
Is the best move always to pay down debt?
Not all debt is bad. For instance, if you have a car payment at a locked moderate or low interest rate, it might not make sense to make an extra payment or pay it off entirely. Other variable rate debt can creep up on you and rapidly compound, such as revolving balances on credit cards with high interest rates. If you have growing variable rate debt, it may make sense for you to pay off as much as you can using your tax refund.听听
How much of an emergency fund do I need?
A good rule of thumb is to keep three to six months of living expenses in your emergency fund. Start with your daily checking account and build up a buffer. Once you鈥檝e reached your comfort level of at least three months of emergency or buffer savings, consider other higher-yield, lower-liquidity products. Make a plan to replenish any funds you鈥檝e used, even if it鈥檚 slowly over time. If you don鈥檛 have an emergency fund, consider using your tax refund to start one. It鈥檚 never too late to start saving.
In this environment, how can I make my money grow?
If you鈥檝e looked at your debt and feel good about what you鈥檝e set aside for emergencies, consider putting any remaining cash into an interest-bearing savings product, such as a certificate of deposit or money market account. These products are offering some of the highest rates of return (annual percentage yields) we鈥檝e seen in decades and can help lump sums of all sizes grow. This can also be an effective strategy to save toward upcoming life moments like buying a car, a special vacation or paying for a wedding.
For more information on how 黄色短视频 is helping customers and communities during tax time, visit the 黄色短视频 Tax Resource Center. For more information and tips regarding managing your money, visit Financial IQ.听听