Article | March 14, 2024

3 Reasons to Deposit Your Tax Refund into a High-Yield Account

Plan & Retire

Young boy laughing while putting sunglasses on dad

Hurray for tax refunds!

If you’re expecting to receive a refund this year, congrats! It’s always great to get a nice little bonus in addition to your regular income. While it might be tempting to spend this lump-sum amount, there are more rewarding ways to use it than just a shopping spree. Consider saving it for the future and making your money work for you in an account that earns dividends.

  1. You’ll earn more with a high-yield account.
    High-yield accounts earn more than regular savings accounts thanks to higher rates and compounding dividends. Golden 1’s high-yield accounts are compounded monthly, which means you’ll earn dividends on your current balance, including any additional dividends you earned previously. So, every month your money grows a little more, depending on the dividend rate.

  2. Your money grows risk-free.
    Unlike the risky stock-market, a high-yield account helps your money grow risk-free. While the dividend rate may fluctuate based on the federal funds rate, this will only affect your earnings. You won’t lose any of your initial deposit.

  3. Easy access to your funds when you need them.
    It is best to leave you tax refund in a high-yield account for as long as possible because the longer your money stays, the more it grows. But sometimes you need to access your funds when you least expect it. High-yield accounts like a Money Market Savings or our MarketRate Checking℠ account allow you to access funds when you need them. If you choose to save in a Term Savings Certificate account, you’ll earn our highest rates but there may be a penalty for early withdrawal.

As a valued member of Golden 1, you can choose a high-yield account that meets your individual needs. Plus, you can relax knowing your money is secure – insured up to $250,000 by the NCUA.

Let’s take a closer look at some of the high-yield accounts Golden 1 offers.

  • Terms Savings Certificates
    If your tax refund is $500 or more and you can leave your funds on deposit for a specified time, our Term Savings Certificates offer our highest savings rates and risk-free returns. A Term Savings Certificate is a great choice if you want to save for long-term financial goals. 
  • Money Market Savings
    To maintain easy access to your cash while earning a competitive rate, consider our Money Market Savings. The minimum opening deposit is just $100, and you can add or withdraw funds anytime without penalties. Plus, with its tiered rate, your earnings increase as your balance grows. This flexible account with competitive returns is ideal for short-term savings goals, emergency funds, or just saving for a rainy day. 
  • MarketRate Checking℠ Account
    If you regularly keep a higher balance in your checking account, here’s a great option to make this money work for you. Our MarketRate Checking℠ account offers the higher earnings of a savings account with the flexibility of a checking account. The minimum opening deposit is $25, and the account earns dividends with a minimum daily balance of $1,000. With balances of $10,000 or more, you'll earn higher dividends, and we'll waive the monthly maintenance fee.

To learn more about Golden 1’s high-yield accounts, side by side, check out this comparison page.

At the end of the day, it’s your tax refund! So invest it or spend it – however you see fit!

Looking to save even more?
Tax season only happens once a year. But with a high-yield account, you can grow any other cash inflows – work bonuses, side hustle income, gifts, and more. Simply deposit this money into a high-yield account and see it earn dividends!

And no matter what high-yield account you choose, your money is safe and sound with Golden 1. We've been protecting members and their finances for 90 years, and our members' deposits are also federally insured by NCUA.

You can open your new high-yield account through the Mobile App or Online Banking. You can also make an appointment at a branch location or call our contact center to talk with a member service representative about the best option for you. If you are not yet a member of Golden 1, we can also help you establish your membership so you can start enjoying the benefits of your new account today.