Open an AGCU Certificate of Deposit and lock in a fixed interest rate so you can enjoy the peace of mind of a guaranteed interest rate on the money you save.
Certificates of Deposit allow you to lock in a fixed rate so you can maximize your returns and your peace of mind at every step of your savings journey.
AGCU, The Secure Place To Save Your MoneyWhen you deposit money at AGCU, safety should be at the top of your priority list. One of the primary reasons to use a financial institution is to keep your money safe. It’s a great idea for members to save regularly to build economic security for themselves and their families.
Federally-insured credit unions are just as safe as FDIC-insured bank accounts. The National Credit Union Insurance Fund (NCUSIF), which is backed by the U.S. Treasury insures your funds. The National Credit Union Administration (NCUA), an agency of the U.S. government, administers NCUSIF coverage. According to the NCUA, “the NCUSIF is a federal insurance fund backed by the full faith and credit of the United States government.” The NCUA reports that “Not one penny of insured savings has ever been lost by a member of a federally insured credit union.”
The NCUA insures up to $250,000 per account ownership type/account type and institution. What does that mean? It gets a little complicated depending on the account types but, essentially, it means that you have at least $250,000 of protection on your deposits should the worst happen and your bank or credit union is forced to close.
How much coverage you have depends on what category your account falls into. If you have a savings account and a checking account, those are both in the single owner account category, so they would be insured for a total of $250,000. But if you had accounts of different types—say a joint checking account and a single owner savings account—each account would be insured for $250,000, meaning you would have a total of $500,000 of protection.
To find out exactly how much coverage your accounts have, use the NCUA’s Share Insurance Estimator. After listing each account registration (such as an IRA, business account, or joint account), you’ll get a detailed report of your coverage, and you can identify any gaps.
Learn more about NCUA Insurance.
Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose
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Everyone loves payday, but many young adults and Millennials don’t know how to allocate their paycheck in a way that best serves their financial needs and goals long term. That’s where having a strategic personal budget comes into play.
In this article, we will explore the importance of budgeting and the different categories that you should consider when creating a budget. By breaking down your expenses into these personal budget categories, you can gain a better understanding of your spending habits and make informed decisions about where to cut back or allocate more funds.
But you may be asking, “What exactly is a personal budget?”, and “What are basic budget categories I should use as a young adult”? Before answering these questions lets first establish the importance of why everyone, not just young adults and Millennials, should be using a budget.
No matter your age, budgeting is a crucial aspect of managing your finances. By creating a budget, you can keep track of your income and expenses even if you don’t have that much income.
Creating a budget helps ensure that you are spending within your means, meaning, you’re not spending more than you’re making (check out the video the right, “10 Money Mistakes to Avoid in Your 20’s” by Elena Taber, for more helpful money tips).
Doing this at a young age will help you develop successful habits for whenever you do have more income and more expenses as you grow older.
If you’re asking the question “How can I be smart with my paycheck?”, your first step to answering that question is making sure you are deducting the optimal amounts. If you are at an eligible place of employment, your employer will likely deduct funds for your health care plan and taxes, but you can determine how much tax is withheld by changing a few elections on your W-4.
If you receive too large a tax refund for the prior year, or you’re stuck with a big bill when you file, consider adjusting the amount withheld on your W-4. Also, be sure to take full advantage of any employer-matching offers for your retirement funds — don’t give up free money! Making sure your paycheck is optimized is critical before embarking on creating a personal budget with various categories and subcategories.
After your contributions are deducted from your paycheck, you’ll be left with your take-home pay, or net income. You’ll use this money for covering expenses until the next payday, so it’s best to budget first for necessities. What budget categories do you use for necessities/expenses? Consider the following:
You can use the “envelope system” to actually put cash away for necessities, or set up a detailed old-fashioned budget spreadsheet which prioritizes your needs. You can also choose to use the “50/30/20 budget” that sets aside 50% of your income for needs. To make your personal accounting even easier, there are many convenient online budgeting tools or budgeting apps you can use.
Putting together a budget requires looking at a range of expenses; some that are expected and others that are not. Expenses generally fall into one of two categories — variable and fixed. Understanding how they differ can help you handle current bills as well as future ones. You can learn more about how to budget for fixed and variable expenses in our post “Fixed vs. VaRiAbLE Expenses”.
Once you’ve set aside money for your needs, you can use some of the remaining funds for wants, or discretionary expenses. A list of irregular expenses can include some of the following:
With all of your irregular expenses you want you can put away the cash you need into an actual envelope, mark down the amount you can spend in that category on a paper or in an app budget, or simply keep in mind that 30% of your paycheck can be spent on these expenses.
Now that you’ve taken care of your needs and wants until the next paycheck, it’s time to think about the future. Put a percentage of the remaining funds into savings. Savings options could include some of the following:
Use your predetermined amounts, or 20% of your take-home pay, if using the 50/30/20 budget.
Many people mistakenly think they need to spend all of their paycheck before the next one arrives. If you’re left with extra money at the end of the month, there’s no need to waste it. You can beef up your savings, get ahead of your debt or stash some cash away for an expensive time of year, like the holiday season.
You’ve made it through this article, so congratulations on taking the steps to start controlling your personal finances! By dedicating a portion of your paycheck to necessities, wants, and savings, you’re setting yourself up for a secure financial future.
Whether you prefer old-fashioned budgeting, digital tools, or the “envelope system,” make sure to prioritize your needs, enjoy life’s little indulgences, and always have some savings on hand. Who says adulting can’t be fun? Give yourself a pat on the back and enjoy the peace of mind that comes with being financially responsible.
And don’t forget! AGCU offers online financial management tools whenever you become a member and set up an account through the NetTeller Banking System. Take the first step today and visit our personal online banking page to learn more.
Shopping around for the best savings account can make a significant impact on your financial well-being. With inflation nibbling at our budgets, finding an account that offers decent returns has become more crucial than ever. Certificates of Deposit (CDs) and money market accounts are two alternatives to traditional savings accounts that offer higher interest rates with minimal risk. But how do you choose between them? Let’s explore the factors to consider and help you decide which option best suits your needs.
CDs and money market accounts offer competitive interest rates with low risk, but they serve different purposes based on your financial goals and needs.
A Certificate of Deposit (CD) operates as a time-bound investment where you deposit a lump sum for a fixed term, typically ranging from three months to five years. In exchange, you receive a fixed interest rate, and at the end of the term, you get back your initial deposit plus the accumulated interest. CDs are NCUA-insured and do not lose value, making them a safe investment option.
Pros:
Cons:
Money Market Accounts: Balancing Flexibility with Returns
A money market account blends features of both checking and savings accounts. You can deposit and withdraw funds as needed, typically via checks or a debit card. Money market accounts offer higher interest rates than regular savings accounts, making them an attractive option for savers looking to earn more while maintaining access to their funds.
Pros:
Cons:
Deciding between a CD and a money market account boils down to your financial goals and timeline. Here’s when each option might be more suitable:
CDs and money market accounts offer safe and reliable ways to earn higher interest on your savings. Choosing between them depends on your individual financial circumstances, goals, and need for access to funds. By evaluating the pros and cons of each option and considering your long-term objectives, you can make an informed decision that aligns with your financial strategy and helps you achieve your savings goals effectively. Contact Member Care to Open a CD or Money Market Account Today!
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Give it a try today! Video Banking Hours (CST): Mon – Fri: 9:00 a.m.- 5:00 p.m.
Apply through online application.
Do you have questions regarding becoming a member or opening an account? Call (417) 831-4398 or fill out our contact form and we will contact you!
If you visited one of our branches during the Christmas season the past two years, you may have noticed some extra decoration on our windows.
In light of celebrating the birth of Jesus Christ and bringing extra joy to the hearts of our members during the winter season, AGCU hired Lynne Hall to decorate our windows.
After hearing numerous compliments from our members on the presence of her art, we can’t help but highlight her talent and blessing to our branches and members.
We reached out to her with a few questions, and we thought you might want to hear the heart behind the beautiful art that you see every time you visit one of our branches.
We are always proud to highlight the talent and dreams of our members, and we are excited to tell you more about Lynne Hall.
In 2016, my first grandbaby was on her way, and I had always wanted to draw more realistic portraits, so I took a course and fell in love with the process!
I love how God created each of us and everything so uniquely-I’m intrigued by the intricacies of His creation. I especially love to capture the candid looks on a child’s face, or really anyone’s face, the personality of people & their furry friends, as well as the color and beauty of flowers, boats on the water, sunsets on the beach… I’m also inspired by other artists, I love seeing people thrive in what God has called them to do.
Creative wise- I’ll forever be working on this. Create lots and lots of art and find those things that inspire you; that don’t feel like work, by doing so, others will take notice because you’ll likely be doing what God has put on your heart to be a blessing to others and they can see that in you.
Financially-set up your business properly, take care to treat it like a business
Relationally -learn about the people you meet, what inspires them and you’ll be able to create something really special that they’ll treasure and will fill your heart too!
First, the prompting of the Holy Spirit to act upon long held desires.
My portrait instructor, Audrey Bottrell Parks, inspired and encouraged me that I could do it. My family was also a great encouragement.
Ultimately, my good friend, Kellie Jones, who when she saw some of the portraits I had given away as gifts, exclaimed-”why are you hiding your talent:)” Before that, I don’t know if I realized that this could be the thing God was giving me to do to love on others and make some sort of an impact on the world around me.
It is not hard to find joy in my work. When you get to create something that people really treasure, it makes even the harder days or the ugly stage of the work, enjoyable!
The look on the face of the recipient-lots of joyful tears, hugs and smiles! That truly fills my heart!
I see that you have financial services that help business owners. Do you also offer assistance for the person who are not necessarily business minded such as, how to set up your business properly and other details of running a profitable business? I love that you are spotlighting your members, what a great opportunity to learn about other people in our area!
AGCU’s Answer: We do not have a business advisory, but we are always happy and willing to answer any business related questions, and will do our best to assist in any needs requested.
I have lots of creative dreams, so this is tough. However, my husband and I have talked, over the years, about creating some books that include his creative writing and my artwork that can inspire, uplift and make an impact.
Another thing would be to be a part of larger mural projects alongside other muralists and communities to create a beautiful work of art that has that same impact – inspire and uplift. I love to travel, so I would love to see that take place in many locations!
Because I feel like I was so slow to realize that this thing I take so much joy in is available to others, I want to do workshops or classes to show others that sometimes through the creative process, letting go of perfectionism and doubt, God shows us something. He has created us all to be creative, whether it’s through fine arts, being good at organizing, business mindedness, that thing you do that you take for granted and think everyone can do this. God wired you to make an impact on this world, so we can all honor Him and do that thing to the best of our ability and to His glory!
I would have to say, God’s creation. I get inspired to create by seeing the beauty all around. Sometimes it’s the fullness I feel from beautiful colors or flowers, landscapes, sunrise and sunset. Sometimes it’s adorable furry creatures. Often, it’s precious faces, young and old whose expression tells part of their story. I think all of it tells God’s story and we can love and appreciate Him through it all.
A common question we hear across the industry when it comes to saving… How do you save for so many things at once?
One of the most overwhelming parts of saving for everyday Americans is balancing saving for so many competing priorities.
Not only do they need to save for short-term emergencies and opportunities, but also for future and long-term goals. Those long-term goals include major milestones like education, homeownership, and retirement.
2023 America Saves Week
Saving at Any Age | Friday, March 3, 2023
Saving. Do you view it as an ongoing journey? Or do you consider saving as someplace you arrive at? At America Saves we are in the camp that saving is a habit, not a destination. And it’s a habit that can be formed at any age. Whether you are a parent trying to instill this habit in your children or you want to change your own saving behaviors, there are strategies that savers of all ages can develop.
Research tells us that children’s money habits are often formed by age seven so starting early to teach them about saving can have a huge impact. Many parents are accustomed to hearing frequent requests from their children about a toy, game, or piece of clothing that they “just have to have.” Sound familiar? Using these wants is a great way to help children learn to save.
Children can learn to set a saving goal and figure out how long it will take to save enough money for their goal. Create a fun system to track progress, provide regular encouragement, and use incentives such as matching funds. Talk about how it feels to see your money grow. And don’t forget to lead by example – show children how you are saving.
You can also give children the opportunity to make some decisions about their money. Empowering children from a young age to make choices about money they earn or receive as gifts is a great way to build that confidence.
For young adults, as they begin to earn a regular and potentially higher income, a strong foundation begins with basic understanding of the difference between needs and wants. The America Saves Spending and Saving Tool is an easy-to-use resource that provides a clear view of your finances and can be insightful in identifying essential and discretionary spending. The system of automatic saving, especially through paychecks with split deposit, can set young adults on the path to a lifelong saving habit.
It can be hard to stay motivated when setting aside money for something in the future no matter what your age. It’s easy to focus on what you want in the moment — we don’t want to wait to purchase that expensive pair of sneakers. We want to take a trip in the next three months. Retirement is so far off that it feels OK to spend more of your current income right now and catch up later. In each of these scenarios, we aren’t thinking about our future selves, just who we are and what we want today.
Thinking of our future self – what we will want, what we will be doing, what we will believe – is one way we can develop a saving mindset. Asking questions about our future selves helps us create a vision for our future. For example, consider:
Later go back and read your answers to see how they compare to the present. Having the ability to look ahead, even if it’s a short time in the future, is a great way to reinforce saving today for tomorrow. This exercise can be done at any age, even with children.
Journeys can take us on many different paths and saving journeys are no different. So stay with America Saves as you and your family embark on a new journey or resume one that encountered a detour. It’s never too late to #ThinkLikeASaver.
2023 America Saves Week
Paying Down Debt Is Saving | Thursday, March 2, 2023
Making the decision to pay down debt, particularly consumer debt, can be mixed with emotion. You feel good about choosing to take concrete steps to pay off balances on credit cards, auto loans,student loans or other installment loans. On the other hand, you feel less positive about the amount of money you are directing into a savings account. Well, we’re here to show you how reducing debt is a form of saving, to give you strategies for the best way to do so that align with your personal situation, and to boost your financial confidence to keep you working toward your goals.
As you pay off your debt you are freeing up money, allowing you to direct those funds toward saving for something else that’s important to you – perhaps an emergency/opportunity fund, a vacation, home purchase, or retirement. This money is freed up as you spend less on interest, and possibly late fees, and lowering the debt balances themselves.
If you have more than one debt you want to pay off, for example an auto loan and a credit card balance, there are two main strategies to help you decide which debt to pay off first.
You choose which method is right for you and your situation.
Once you are on a path to reducing your debt, reflect on the type of relationship you have with credit. Credit is a tool. When used wisely and with purpose, credit can help you achieve your financial goals and build financial confidence. Having a clear view on when and for what purpose you use credit is the foundation for a positive relationship.
Sometimes we’re told there are good types of debt (home mortgage) and bad debt (credit cards). This type of categorization is based only on the financial aspect and not the personal situation you are dealing with. It may feel better to ask yourself if the type of debt you are taking on is a good decision for you or not.
For example, when an emergency expense crops up, and it is large enough that it will deplete all or nearly all of your emergency savings, you may feel like you’re on shaky ground if another expense crops up before you can replenish your savings. So, you may weigh this option against using a combination of savings and credit based on what feels best for you in the situation.
Making purposeful choices about credit, something that you plan for financially and mentally can help you build more financial confidence.
2023 America Saves Week
Saving For Major Milestones | Wednesday, March 1, 2023
What do homes, education, and retirement all have in common? They are major life milestones that require advance planning and saving large amounts of money. That amount of advance planning and money saved that is needed may make you doubt your ability to reach these goals. Even if you don’t feel that way today, you may have in the past or may in the future.
The good news is that there are ways to plan and save for these major milestones in a way that aligns with your values and current life situation and still sets you up for success. Keep in mind:
With all these goals, while the sooner you can start saving for them the less you will have to save each month, recognize that your situation will determine when you are able to start saving. Delaying when saving for education may mean you need to take out more in loans. Delaying saving for home ownership or retirement may mean you have to wait longer to buy a house or work longer before you retire. These are your choices to make.
Confidence comes with knowing you have done your research, consulted with professionals, examined your current situation, made some predictions for future saving opportunities, and recognized that as life unfolds you can adjust your plans.
2023 America Saves Week
Saving For The Unexpected | Tuesday, February 28, 2023
How often have you heard that saving for life’s unexpected events is very important and a necessary part of being financially prepared? Most likely A LOT!Accompanying this message often is the statement that you need three to six months of expenses in your emergency savings account.
For those of us who struggle with saving for the unexpected or are saving but don’t have that three to six months amount accumulated, our confidence might be shaken because we haven’t met this standard. And when we lack confidence, it can be even harder to get or stay motivated to save for those unexpected events or opportunities that arise.
Instead of focusing on what you haven’t accomplished, here are a few strategies to consider that may help you build your financial confidence and begin or continue on your path to saving for the unexpected.
America Saves is here to help you get started on any of these strategies. Check out the 6 Steps to Establishing a Spending and Savings plan, take the America Saves Pledge, or listen to our Think Like A Saver podcast. We’re with you every step of the way on your savings journey.
2023 America Saves Week
Saving Automatically | Monday, February 27, 2023
Do you ever find yourself wondering if there is a magic formula to saving
Does it seem that everyone around you knows the secret to saving successfully except you? It’s not unusual to feel unconfident about saving, no matter how much money you earn. Confidence doesn’t necessarily come with having a lot of money. Rather it comes from building healthy financial habits and using the resources you know are available to you – this is your financial confidence!
A great place to start building your financial confidence is to set up automatic savings. When you are saving a dedicated amount of money every week, every month, or on some other regular interval, you can begin to feel a sense of control over your saving habits. Whether you are saving just $5 or $10 a month or more, it’s the fact that you’re doing it automatically that is important.
Saving automatically is the formula for successful saving for anyone – including you. Getting started doesn’t have to be a hurdle either. Consider which one of the following two strategies would work best for you and follow the steps we’ve outlined.
1. Instructing your employer to split your directly deposited paycheck into two or more accounts at your financial institution with one account being a dedicated savings account.
2. Directing your financial institution to automatically transfer money into your savings account.
For option #1, contact your employer’s payroll department to set up split deposit, telling them how much you want to save per paycheck, and follow their instructions.
If you want to use option #2, contact your bank or credit union telling them when and how much money you want automatically transferred into your savings account.
By utilizing either of these automated saving methods you can feel confident about building a healthy habit of saving. Imagine how good it will feel to see money accumulating in your savings account on a consistent basis. Instead of that voice in your head telling you that saving is hard, you’ll be able to say with confidence, “I am saving regularly!”
America Saves has a number of resources that can help you get started saving automatically:
So, remember your unique financial situation calls for you to make the choices that will work best for you and your family, which will ultimately increase your financial confidence and help you continue making informed choices throughout your saving journey!
Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
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It’s finally Spring Break, and you can’t wait to swap the library for the beach! However, this doesn’t mean you need to spend a fortune to have fun. Have a great time without hurting your budget by following these five Spring Break tips.
Lots of colleges offer on-campus travel agents who can help you plan your vacation right by snagging the best deals. Plus, your school may be able to get you special discounts.
Before booking any hotel stays, attractions or restaurants, check out couponing sites! You can also browse the tourist brochures for deals once you get to your hotel. Why pay full price if you don’t have to?
Get the best flight deals by clearing your web browser cache before searching. Book on a Tuesday that’s six weeks before your flight for the time window offering the lowest prices. Also, consider flying mid-week for the best deals.
Many discount travel sites have apps you can download to help you with scheduling, pricing and organizing your trip. You’ll have access to exclusive deals, plus loads of suggestions for local tourist hotspots to help you plan your stay.
Don’t assume you need to eat each meal at another restaurant. Instead, stock up on basic supplies at the grocery and eat most of your meals in your hotel room. Take advantage of the continental breakfasts that many hotels offer. You can also pick up food from a street vendor for a fraction of the price.
Spring break doesn’t have to mean a break from budgeting. Plan ahead and choose wisely so you won’t be paying off your vacation all summer long.
Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
Learn More About Banking with a Purpose
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At AGCU, we know that becoming a homeowner is a rite of passage for many individuals. But, the process can be daunting and complex for a lot of people. It involves making a significant financial commitment and accounting for a range of expenses including mortgage payments, insurance, taxes, and potential repairs or upgrades.
To help navigate this process we have compiled five home-buying tips you should consider, all coming from industry-recognized experts and researched credible sources. Continue reading below!
Before you begin your home search, it is important to determine what you can afford. A number of factors will influence this decision, including your location, income, credit score, and the size of the down payment you can make.
Investopedia contributor and finance writer Reyna Gobel recommends putting down a 20 percent down payment to avoid paying private mortgage insurance, as this will leave you with a loan that typically covers 80 percent of the home’s cost, which must be paid off over a period of 15-30 years.
When calculating affordability, it is also important to factor in any potential repairs or upgrades that may be needed to the home you are interested in. These expenses may include the following upgrades:
If you don’t think you’ll be able to afford it, then that should inform you to wait before continuing in the home-buying process.
AGCU offers a mortgage calculator that can help you get a better understanding of what you can afford. To use this tool, you will need to input the following information:
The calculator will then provide an estimate of your monthly mortgage payment, which includes the principal and interest, property taxes, and homeowners insurance. While this is not a guarantee of what you will be approved for, it can be a good starting point, especially if you are unsure of your budget.
Timing is also important when it comes to purchasing a home. Mortgage rates can fluctuate throughout the year, so it is important to be aware of when interest rates are low and when prices are expected to rise.
According to Gobel, the spring is often the best time to shop for a home, as many people are waiting for the school year to end before making a move. On the other hand, the fall is often the worst time to buy, as many people have already settled into their new homes.
Regardless of what time of year you decide to buy a home, make sure that your research accurately reflects that of the local area. Don’t make the mistake of making inaccurate comparisons.
Before making a final decision, it is important to consider all of your housing options and assess whether homeownership is the right choice for you. Part of your personal assessment may involve the following:
After your assessment you may realize that renting is still your personal best option. Gobel suggests doing the math before making a final decision, and recommends subtracting the cost of your most expensive hobby or activity from your estimated monthly mortgage payment. If the balance is not enough, you may need to cut back on your spending or look for a less expensive home.
There are several home loan options available to potential homeowners, including fixed-rate loans, adjustable-rate loans, and FHA loans. These loans have varying interest rates, credit score requirements, and loan terms, so it is important to do your research and choose the option that is right for you. Additionally, it is important to consider your credit score, as this will influence your interest rate and your eligibility for certain types of loans.
At AGCU, we know homeownership is a major milestone and the journey towards it can be overwhelming. We hope our guide provides a roadmap for aspiring homeowners, starting with determining affordability and using a mortgage calculator to estimate monthly payments.
Keep in mind that timing is extremely important in the home buying process, with interest rates and expected future home prices to keep in mind. Considering all options and weighing the costs of homeownership is crucial before making a final decision.
Lastly, exploring various home loan options (with their different interest rates), factoring in credit score requirements, and understanding loan terms is necessary to finding the right fit. With keeping these tips in your mind, the journey towards homeownership can be a well-informed and successful one.
Learn more about Home Loans with AGCU, begin the Apply now, or contact our mortgage professionals at 866-508-2428, email mortgages@agcu.orgfor more information
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As the temperature drops, homeowners’ wallets start to freeze up with rising heating costs. This winter natural gas households can expect a 25% increase compared to last year, while those heating with electricity can expect a 6.5% hike, and those using oil or propane may face a 54% surge.
At AGCU, we care about sharing the best practical advice for homeowners to save money, no matter if they’ve used our home loan services or not. So, without any further ado let’s take a look at ten simple, practical ways to save money and be kinder to the environment this winter!
By following some of our helpful tips, we’re confident you’ll be able to say goodbye to sky-high heating bills and hello to a cozy, environmentally friendly home. By incorporating just a few of the simple solutions outlined in this article, you can make a huge impact on your wallet and the planet.
But let’s be real, being a homeowner is expensive enough, especially when Mother Nature decides to turn up the heat…or turn it off. So don’t let the weather dictate your finances and don’t wait to weatherproof your home! Today’s the day you can start using AGCU’s helpful tips and embrace cost-effective and eco-friendly solutions this winter.
It’s tax season, so that, of course, means scams are rampant. Follow these tax security tips to help you stay safe and secure this time of year.
By filing early, you reduce the window of opportunity for scammers to file a fake return using your info. If it’s too late for you to file early, consider filing for an extension to give yourself more time to prepare your return.
Your SSN is a valuable piece of personal information for identity thieves. To keep it safe, avoid carrying your Social Security card with you and never unnecessarily share your SSN. When filling out tax forms, double-check your SSN to ensure it’s accurate. If you suspect your SSN has been compromised, contact the Social Security Administration ASAP! Additionally, if you receive a notice from the IRS suggesting that someone else has already filed a return using your SSN, contact the IRS and follow their instructions to resolve the issue.
Your online tax accounts contain sensitive information, so it’s important to use strong passwords that are difficult to guess. It’s also essential to use different passwords for each account. This way, if one account is compromised, your other accounts won’t also be at risk. Finally, enable two-factor authentication whenever possible to add an extra layer of security to your accounts.
Phone scams are a common tactic used by scammers to trick people into revealing their personal and financial data. These scammers often pose as IRS agents and threaten legal action if you don’t pay an alleged tax debt immediately. If you receive a suspicious call, hang up and report it to the IRS.
Identity thieves do more than just plunder your online info. They also look for sensitive information in mailboxes. Make sure your mailbox is secure and is emptied daily. For the best security, consider using a locked mailbox or a P.O. box for protecting your mail.
When filing your taxes online, be sure to use a secure Wi-Fi network to prevent hackers from intercepting your information. Avoid using public Wi-Fi networks, as they can be easily compromised. Instead, use a secure, password-protected Wi-Fi network you trust.
Scammers love tax season, when there’s ample opportunity to trick people into revealing their personal and financial information. Be wary of any unsolicited emails, phone calls or text messages claiming to be from the IRS or other tax entities. Also, be skeptical of any promises of big refunds or threats of legal action. If it sounds too good to be true, or unbelievably urgent, it probably is.
With tax season upon us, it’s important to be aware of the various tax scams that could potentially steal your identity or money. Scammers love to take advantage of people during this time of year, so it’s crucial to stay informed and vigilant to protect yourself. In this article, we’ll explore some common types of tax scams and provide advice on how to avoid them.
Phishing scams are one of the most common types of tax scams. Scammers will typically send out an email or text message posing as a legitimate tax authority such as the IRS. They’ll often use intimidating or urgent language, urging you to click on a link or download an attachment to avoid penalties or legal action.
However, the link or attachment will often lead to a fake website that looks like the real deal. The website will ask you to enter personal or financial information, such as your social security number or bank account details. Once you’ve provided this information, the scammers can use it to steal your identity or money.
To avoid falling victim to phishing scams, never click on links or download attachments from unsolicited emails or text messages. Always double-check the sender’s email address or phone number to ensure it’s legitimate, and never enter personal information into a website that you’re unsure of.
Fake tax preparer scams involve scammers posing as legitimate tax preparers, often offering their services at a discounted rate. They’ll ask for personal and financial information to file your taxes, but instead, they’ll use this information to steal your identity or money.
To avoid fake tax preparer scams, be sure to research any tax preparer you’re considering using. Look for reviews or recommendations from trusted sources, and make sure the preparer has a valid Preparer Tax Identification Number (PTIN) issued by the IRS. Always ask for a quote before agreeing to use their services and be wary of any preparer who asks for payment upfront or promises an unusually large refund.
Phone scams involve scammers calling you and posing as an IRS agent, threatening legal action or arrest if you don’t pay an alleged tax debt immediately. They may ask for payment via wire transfer, prepaid debit card, or gift cards.
The IRS will never ask for payment over the phone, nor will they threaten legal action or arrest. If you receive a suspicious call, hang up immediately and report the scam to the IRS.
Identity theft scams involve scammers stealing your personal information, such as your social security number, and using it to file a fake tax return in your name. They’ll then collect the refund before you’ve even filed your real return.
To avoid identity theft scams, protect your personal information as much as possible. Avoid carrying your social security card with you, and never share your social security number unnecessarily. Always double-check your social security number on your tax forms, and file your tax return as early as possible to reduce the risk of someone filing a fake return in your name.
Refund scams involve scammers offering to help you get a larger refund than you’re entitled to. They may ask for payment upfront or a percentage of your refund.
To avoid refund scams, be wary of anyone promising unusually large refunds or asking for payment upfront. Always use a reputable tax preparer and check their credentials before using their services.
By staying vigilant and informed, you can protect yourself from the various tax scams that are out there. Remember to always verify the legitimacy of any communication claiming to be from the IRS or another tax agency, and never share your personal or financial information without verifying the authenticity of the request. By filing your taxes early, keeping your SSN safe, using strong passwords, being wary of phone scams, securing your mailbox, and using secure Wi-Fi networks, you can minimize the risk of falling victim to tax scams. Take the necessary precautions, and don’t hesitate to seek help if you suspect you have been targeted by a scammer. Stay safe this tax season!
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