UFC20-0176_Social-Media_Saving-Taxes-Money-Market_Blog-Image_576x384_v1

Saving for Taxes? 3 Smart Reasons a Money Market Account Makes Sense

In case you haven’t heard, the 2021 Utah and federal tax deadlines have been extended to May 17. If you’re already looking for a better way to save for next tax season, or if you’ve just been looking for a smarter way to save up for any semi-major expense, a money market account can help you earn extra cash and give you a head start on your savings plan.

Better Rates

Money market accounts are tailor-made for saving for taxes. They offer better returns than most traditional savings accounts, which makes the hassle of saving a little less painful. And if you can find the right one (pro tip: Utah First Credit Union), you can get returns that are head and shoulders above what other banks and credit unions can offer. In that way, a money market account is the perfect account for large, infrequent expenses like taxes, vacations, big events (wedding season approaches), and holidays.

Safer Investment

There is some kind of financial poetry involved in having your savings federally insured while saving to pay taxes to the federal government. Sure, there are other ways to earn money with your money, like the stock market for example, but you’re never assured financial growth. And sometimes the risk isn’t worth the potential reward. With a money market account, your savings is shielded from the ups and downs of the market to the tune of (up to) $250,000 in federal insurance. At least Uncle Sam is doing something to help you pay your taxes.

Lesser Temptation to Spend

Let’s be honest. When your “savings” is commingled in the same account as your entertainment funds, it’s really hard to tell the difference between tax money and the next movie night or big video game release. You know you should be saving for taxes, but the dollars you set aside for your mortgage, your car payment, and everything else all seems to run together when you can only see one lump savings sum. A money market account that’s separate from your other savings and checking accounts lets you leave your tax savings (or whatever else you’re saving up for) alone. That way, it can grow with a better interest rate, free from your interference.

Saving for your next big purchase (even if it’s not until next tax season) is simpler and smarter with a money market account. If you’re ready to earn better interest, while safeguarding your investment from the volatility of the market (and yourself), open a money market account and start saving smarter today.

News & Events
May 12, 2021 / Credit

When financial times get tough, credit scores can suffer. It’s one of the unfortunate facts of financial life. But having less-than-perfect credit (or no credit) doesn’t have to disqualify you from the kinds of quality loans and financial services that can help you both live your life...

Apr 28, 2021 / Home Equity

The Utah housing market has never been hotter. As a result of extremely high demand and limited supply, the median sales price for a home in Utah has increased by 20 percent in the last year alone. The current median sale price for a single-family home in the state currently stands at...

Apr 21, 2021 / Money Tips

In case you haven’t heard, the 2021 Utah and federal tax deadlines have been extended to May 17. If you’re already looking for a better way to save for next tax season, or if you’ve just been looking for a smarter way to save up for any semi-major expense, a money market account can...

Corporate
200 E South Temple
Salt Lake City, Utah 84111
800-234-0729
Monday - Friday: 9:00 am - 5:30 pm
View In Google Maps
Routing & Transit Number: 324079500
NMLS # 446035

Utah First Federal Credit Union is federally insured
by the National Credit Union Administration.