Put Your Tax Refund to Work for Your Future

WASHINGTON, March 1, 2012 /PRNewswire/ -- Looking for ways to save for a new home, your retirement or your child's education? This year consider using your state and federal tax returns to grow your nest egg. A great way to do this is by using all or a portion of your refund to purchase U.S. Savings Bonds or other Treasury securities. The U.S. Department of the Treasury offers low-risk savings options that can help families achieve long-term goals.

A convenient and direct way to turn your federal tax refund into Treasury savings options is through the "Allocation of Refund (Including Savings Bond Purchases)" IRS Form 8888. Ask your tax preparer about this form or download it online if you prepare your own taxes.

Why Treasury Savings Options?

Growing your savings with savings bonds or other Treasury securities is affordable, safe and convenient – and you don't need a lot of money to get started. You can purchase savings bonds for as little as $25. Additionally, you can safely buy and manage your Treasury securities 24/7 through TreasuryDirect, the Treasury Department's secure, online system. There are no fees for opening an account or for using TreasuryDirect.

Setting up a TreasuryDirect Account

If buying savings bonds or Treasury securities sounds like a good way to use your tax refund this year, you'll need to take a few simple steps to get started. If you don't already have a free TreasuryDirect account, you'll need to set one up.

1.     Have your Social Security number, bank routing number, checking or savings account number and email address handy.

2.     Go to www.treasurydirect.gov.

3.     Click on the TreasuryDirect link under "Open an Account" and fill out the online form.

4.     Once you've completed and submitted the form, you'll receive an email with your account number.

To purchase savings bonds or other Treasury securities using your tax refund, you or your tax preparer will need to complete IRS Form 8888. This form allows you to direct all or a portion of your tax refund to the financial accounts you choose, including your new TreasuryDirect account.

Once your tax refund is placed into your TreasuryDirect account, log in to your account and select the savings bond or other Treasury security you would like to purchase with your tax refund. You may log into your account any time to buy, manage, and review your savings bonds and other Treasury securities. To continue building your savings, you can also sign up for payroll direct deposit through your employer and automatically contribute to your TreasuryDirect account each pay period.

At tax time or anytime, saving may be easier than you think. By purchasing savings bonds and other Treasury securities you can take control of your future and achieve your family's dreams.

Visit TreasuryDirect.gov today to learn more.

The preceding information has been provided by the U.S. Department of the Treasury, Bureau of the Public Debt.

SOURCE U.S. Department of the Treasury, Bureau of the Public Debt