Smart, Simple Savings Tips for Tax Season

"Unfortunately, many people think of their tax refund as extraspending money, but they should consider setting at least a portionaside for the future," said Gina Renaldo, vice president of MetLifeBank. "Extra money represents an opportunity to start planning for aretirement or saving for a child's education. Saving is a criticalissue, because financial advisors warn that many Americans are livingpaycheck to paycheck, and endangering their ability to livecomfortably in their golden years."

Here are some savings options to consider:

-- Pay off debt. For those who have incurred a significant debt burden, it may be wisest to pay off credit cards first. The high interest rates that most cards carry can negatively impact any other investment decisions.

-- If your employer has a 401K, be sure to invest in it. This is smart money, because it's an upfront tax deduction and usually tax deferred. Plus, many companies will match the investment.

-- Consider a Money Market Account. Choose this option to set aside funds for a rainy day, or to wait until a better investment opportunity comes along. According to Renaldo, the yields on these accounts have begun to rise in recent months, but it's important to spend some time shopping around for the best rate. Look for banks that offer consistently high rates--some institutions offer short-term promotional rates, which drop significantly after a few months.

-- Think about an IRA. People concerned about having enough income to last throughout retirement should consider contributing to an individual retirement account (IRA). There are different types available that can provide tax benefits, but each IRA type has its own specific eligibility criteria and contribution limits. For added savings, look for a no-fee IRA. Please note: before contributing to an IRA, consider consulting with a tax advisor regarding eligibility to contribute, as well as contribution limits.

-- Save now for college later. If your dream is to fund a child's education, the best time to start saving for this goal is now. Consider tax-free options, such as a 529 college-savings plan.

Also, savvy investors should consider all the available optionsout there, including alternatives to traditional banking institutions.For instance, direct banks, which typically provide the convenientaccess of the internet, often offer more competitive rates. For thosewho feel uncomfortable conducting business on the Web, some eBankinginstitutions have developed a network of relationships with financialservices brokers, which can offer the trust and comfort of dealingwith a local financial adviser, and the advantage of great rates.

"People can secure higher-interest rates by depositing the moneythey want to save in a direct, or online bank," said Renaldo."Depending on your balance, just a one percent difference in theinterest rate can mean hundreds, or even thousands, more dollars inyour pocket in just a few short years."

MetLife offers a variety of web-based calculators designed to helpbuild financial freedom, including calculators that can help determinethe best way for consumers to save money, plan toward retirement, andtake the guesswork out of mortgages. Calculators designed to helpdetermine how much you are saving, as well as how much of a consumer'smonthly mortgage payment goes toward principal and interest over thelife of a loan, are available at www.metlifebank.com. An additionalmortgage calculator that can help calculate monthly mortgage payments,in the event of a new home purchase, is available on www.metlife.com.This site also has calculators on retirement savings, including aretirement income IQ quiz.

Also, as part of its Life Advice program, MetLife is offering twobrochures, on "Investing Basics" and "Building Financial Freedom," tohelp people better understand the intricacies of investing and takeappropriate steps to prepare for the future. "Investing Basics" servesas a primer on investment styles, types of investments, and retirementinvestment vehicles. From savings accounts and CDs to bonds andannuities, this brochure can help potential investors recognize theirinvestment style, understand the risk/reward relationship and learnabout diversifying investments. "Building Financial Freedom" providesvaluable information on how consumers can seize control of theirfinances and start planning for the future. Both are available forfree, by calling 1-800-MET-LIFE (1-800-638-5433).

Headquartered in Bridgewater, NJ, MetLife Bank, NA, (Member FDIC),is a federally chartered bank, and a subsidiary of MetLife, Inc.(NYSE: MET). MetLife, Inc., through its subsidiaries and affiliates,is a leading provider of insurance and other financial services toindividual and institutional customers. The MetLife companies serveindividuals in approximately 13 million households in the U.S. andprovide benefits to 37 million employees and family members throughtheir plan sponsors. Outside the U.S., the MetLife companies serveapproximately 9 million customers through direct insurance operationsin Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia,Mexico, South Korea, Taiwan and Uruguay. For more information aboutMetLife, please visit the company's web site at www.metlife.com.

MetLife is the trade name of Metropolitan Life Insurance Company

MetLife Bank, N.A. Member FDIC