According to a survey conducted for Capital One Bank, more than thirty-seven percent of the population will spend 2010’s tax refund on non-essentials. Many will ignore the opportunity to open a savings account. The lure of a vacation in the Bahamas has their attention.
Some Americans do plan to save. Thirty-one percent are planning to save a portion of their tax refund checks. Others (nineteen percent) plan to use the money to pay off credit card or other debt to eliminate the high interest rates charged. Many Americans recognize the instability of the economy.
Capital One Bank gives some advice to those financially concerned taxpayers. Find a method to save as much money as possible. Locate the highest interest rate available for your hard-earned money. Consider automatic transfers to your savings account. Always remember to read the fine print on anything relating to your bank accounts, whether savings or checking.
The same survey results indicate that the average amount of a tax refund check will be $3,129. That fact coordinates with IRS statistics.Thirty-seven percent plan to spend the money. Of those, eleven percent plan to purchase new clothes, six percent will take a vacation, four percent will purchase new electronics and twenty-three percent will use the money to pay household bills. The remaining survey responders plan to put money away for a child’s education or save for their own retirement.
A tax refund check is extra money, similar to a yearly bonus. According to Mark Elliot, Executive Vice President for Consumer Banking at Capital One Bank, people might benefit by evaluating their financial situation before spending the entire amount on luxuries. He opines that saving at least a portion of it is a wise decision.