Interest free? You mean like the .6% crappy interest the banks are paying?
Or the lousy 1% interest or so that CD's and Savings bonds are paying?
If you could get more than a dollar interest on savings accounts in one year, it might be something to worry about.
Some people actually use the income tax and large refund as a savings plan. I know it's not the best method, but it forces people to live within their means who might not necessarily save it if they brought it home.
If it works for them, that's their business.
Or they could invest the money into the stock market. I jumped in as soon as the stock market hit bottom. It was nice having the extra cash to do so... thanks partly to the fact that our government wasn’t confiscating it. And they weren’t because I’ve always kept my withholding to the absolute minimum.
Of course, I’ve got to actually cut a check to Uncle Sam every year in back taxes... but at least I’ve got the use of more of my money every year.
People who use the income-tax refund as a savings plan are earning a 0% interest on their money. Even a cr@ppy 1% interest CD is better than *THAT*.
And you argue the benefits of a 0% interest savings plan? Why?!?