Invest Your Tax Return to Achieve Your Financial Goals

a middle aged man and woman invest their tax return using online banking.

As Tax Day approaches, many individuals are eagerly anticipating the arrival of their tax refunds. Whether you receive a large sum or a small amount, tax refunds offer the chance to make a meaningful financial move. Instead of splurging on a spontaneous purchase, consider putting your tax return towards your long-term financial goals by investing it.

Keep reading to learn about the benefits of investing your tax return, types of accounts to invest in, and how investment checking accounts work.

What are the Benefits of Investing Your Tax Return?

While it may be tempting to spend your tax refund, there are so many more reasons why investing your tax refund can have long-lasting benefits. By investing it, instead of spending it, you’re creating the opportunity for your money to grow over time. Which means you can increase your wealth.

Investing your tax refund can serve as a stepping stone toward reaching your financial goals. Whether you're aiming to retire comfortably, purchase a home, finance your children's education, or establish an emergency fund, investing your refund can get you on the right track.

By investing your tax return wisely, you are not only maximizing your money but also establishing a strong financial base for future success. It's a proactive approach to reaching your financial aspirations.

How to Invest Your Tax Return with CDs and CD IRAs

While there are many different types of investment accounts, those who are looking to invest their tax return with less risk may be interested in a Certificate of Deposit (CD)1 or CD Individual Retirement Account (IRA).2

Certificates of Deposit (CDs) are a safe investment choice provided by financial institutions like banks and credit unions. By investing in a CD, you commit to placing a specific amount of money for a set period, called the term or maturity period. In exchange, the bank usually offers a higher interest rate than regular savings accounts.

Even though CDs offer stability and assured returns, it's important to consider possible disadvantages like penalties for early withdrawal and the downsides of having your funds locked up for a set amount of time.

For those looking to save for retirement while enjoying the benefits of CDs, CD IRAs offer a tax-advantaged investment vehicle. Similar to traditional IRAs, CD IRAs allow you to invest in CDs within a retirement account framework.

How Can You Invest in a Checking Account?

Traditionally, checking accounts have been associated with everyday transactions rather than investment activities. But the Armed Forces Bank Access Investment Checking3 Account combines the convenience of a checking account with the potential for investment growth.

What are Investment Checking Accounts?

Interest checking accounts are bank accounts that are similar to regular checking accounts, but they offer the ability to earn interest on the money in the account.

This is how they differ from standard checking accounts. That’s because standard checking accounts do not generate interest.

However, like standard checking accounts, investment checking accounts offered by FDIC-insured banks are protected by FDIC insurance, providing peace of mind against bank failures up to the insured limit.

While investment checking accounts offer convenience and accessibility, it's essential to weigh their features and fees against your investment objectives and compare them with other investment options available to you.

Armed Forces Bank Access Investment Checking Account: Checking Accounts with Interest

With the Armed Forces Bank Access Investment Checking Account,3 service members and their families have access to a tiered interest-earning account. Which means that the rate of return rises as your balance rises.

Earn increasing interest4 depending on your balance. You will get special loan discounts, including a mortgage closing cost discount ($250). Plus, there are no fees on money orders or cashier’s checks.

Here’s what else you get with our Access Investment Checking3 Account:

  • Unlimited ATM fee waivers5
  • Free, unlimited access to 38,000+ MoneyPass® NetworkATMs
  • No fee money orders & cashier’s checks
  • Refer Friends & Family, Get Rewarded. $50 for you, $50 for them
  • Make Referrals, Get Rewarded: Refer your friends and family to Armed Forces Bank for a new checking account or a Military Access Loan. They’ll get $50 and you’ll get $50 for every new referral.6
  • Receive special loan discounts, including a $250 mortgage closing costs discount
  • Complimentary standard checks
  • Free eStatements and paper statements

Be sure to keep this in mind:

  • There is a $100 opening balance requirement for Access Investment checking accounts.
  • No monthly service charge when you meet one of the following requirements each statement cycle:
    • Maintain a daily balance of $5,000 per monthly statement cycle
    • OR maintain an average balance of $10,000 per monthly statement cycle
    • Otherwise, a monthly service charge of $20 applies.
  • Closing new accounts within 90 days of opening will result in a $20 early closure fee.
  • Add cash to your account from thousands of retailers with Cash2DebitTM 7

Invest Your Tax Return and Invest in Your Future

Although it may not be the most exciting option, investing your tax refund rather than spending it can have long-term benefits. Whether you opt for a CD1 or CD IRA,2 or consider investment checking accounts,3 it's important to match your investment plan with your financial objectives, risk tolerance, and time frame.

By making informed investment choices, you can make the most of your tax return and pave the way towards a more secure financial future.



Member FDIC

1 $500 minimum opening deposit. A penalty may be imposed for early withdrawal. Fees charged to the account could reduce earnings on the account.

2 $500 minimum opening deposit. A penalty may be imposed for early withdrawal. The Annual Percentage Yield (APY) is accurate as of today. CD rates are subject to change at any time and are not guaranteed until CD is opened. Fees charged to the account could reduce earnings on the account.

3 $100 opening deposit required. $20 monthly service charge applies unless you maintain a daily balance of $5,000 or an average balance of $10,000 per statement cycle. Closing new accounts within 90 days of opening will result in a $20 early closure fee.

 4 We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. The Annual Percentage Yield (APY) is accurate as of today. The interest rate may change after the account opening. Fees may be charged to the account, which could reduce earnings on the account. If the account is closed prior to the interest payment date, no interest will be paid.

*5 No fees for withdrawals, transfers, balance inquiries or denied ATM transactions at ATMs in the MoneyPass® Network if you have a MoneyPass® logo on the back of your card. MoneyPass® Network ATMs are within the U.S. only.

6 Referee must enroll in Digital Banking and make one or more direct or mobile deposits that total $300 within 60 days of opening their account.  Message and data rates apply. Refer A Friend terms and conditions apply.

7 A $4.95 fee may apply. Deposit limits and restrictions apply. Not available in Vermont. Ask an Armed Forces Bank associate for details. Not available at self-checkout.