YOUR MONEY Turning Tax Refunds Into Savings (NAPSA)—There are some easy ways to start building your nest ege—despite the fact that the U.S. personal savings rate hit zero per- Net Saving As A Percentage Of Gross National Income Source: Bureau of Economic Analysis, NIPA Tables cent this summer, the second-low- 6% with little or no financial cushion An everything from necessities to 2h est rate since the Great Depression. Many Americans are living and may be borrowing moneyfor financial emergencies. One way to start putting some moneyasideis to take advantage of your tax refunds. A new tool may help people do just that. Called an Express Savings account, the product is customized for taxpayers who want to use their tax refunds to start saving, but who also need access to the funds. “People want to save, but they get derailed by all kinds of unforeseen expenses,” said Mark Ciaramitaro of H&R Block, the com- pany that offers the savings account. “Now that clients can open an account with their tax refund, they may become more financially stable.” A tax refund may bethe only “extra” cash that many people will receive during the course of the year. The interest-bearing savings account—along with H&R Block’s Express IRA retirement account— combinethe need to save with the presence of a tax refund and a trusted tax professional to encourage taxpayers to save in the way that mostfits their needs. “Express Savings is a convenient and painless way to start saving and—in the long term—it helps clients more effectively manage their money by introduc- 0% 2000 OO 2001 2002 2003 2004 MD A new financial tool can help people savetheir tax refunds. ing them to a savings cycle,” Ciaramitaro said. The interest-bearing savings account helps clients establish an emergency fund and achieve short- and mid-term savings goals—such as saving for a down payment on a car—while allowing convenient access to the money if more immediate needsarise. In addition to an ATM card issued for convenient withdrawals, the Express Savings accountoffers competitive interest rates, a low minimum contribution level of $300, customer service, regular statement updates and FDIC insurance. Taxpayers can fund their account using a portion of their refund, by check, or by setting up a monthly deposit ofaslittle as $25 per month. The Express IRA account is designed for H&R Block clients interested in saving for retirement while taking advantage of the tax benefits of IRAs.
