KRTV

Posted: Mar 13, 2010 6:48 PM
Updated: Mar 13, 2010 6:54 PM

A new option from the IRS will allow people to pay their taxes and start saving for the future at the same time.

This year, tax payers have the option to put a percentage of their tax return directly toward the purchase of a U.S. savings bond.

The bond can be for yourself or a loved one and automatically gets deducted from your return.

If used toward education, the bonds are tax free.

Christina Barsky of Consumer Credit Counseling Service said, "It's a nice way to introduce people who maybe aren't used to saving for the long term to a long-term safe savings product because they are backed by the U.S. government. You can buy them for your kids, grandkids."

The bonds can be purchased for a minimum of $50 and a maximum of $5,000 per year.

They can be saved for anywhere between one and 30 years and currently have a 3.36% interest rate.

Click here to read more at the IRS website.