With tax season on the horizon, many credit union members in Georgia say the bulk of that money will be spent:
- Paying down debt
- Creating a financial cushion for when unexpected expenses arise
- Making a large purchase such as a car or down payment for a home
CGR Credit Union President and CEO Jerry Jordan said financial institutions often see a boost in deposits this time of year.
“We experience a significant spike in member deposits starting in late January, peaking in February and then see a significant run-off by the end of March,” Jordan said. “We see this primarily in checking, some savings and we know that it’s federal and state refund check driven. Many of our members have direct deposit tax refunds in excess of $1,000 and we see most of that money leave the account within days, if not hours, of the deposit.”
Jordan suggests rather than spending tax refund money immediately, putting the money into savings, paying down debt, using it as a cushion for when financially strained or maybe investing in reliable transportation.
“Member needs drive our suggestions as to the best use of that windfall tax refund money,” Jordan said. “Our members trust us and we talk face-to-face or on the phone to most of them. We encourage members at tax time – or any time – to come see us for financial advice.”
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