[PeteSB75]

I did receive a pretty sizable return this year. I bought a place in 2008 and last year was the first I've paid interest all year, so my deductions are quite a bit larger than previously. I was thinking that I should start witholding less and have my money throughout the year instead of as one lump sum, so I did the math.

Let's say I reduce my witholding to cover my refund amount this year, about $4700 - figure that at $400 a month extra cash. I put that money, every cent, into a savings account. Now, I don't know about you guys, but my savings account is earning 0.5% interest right now. So, by the end of the year, I have 4811.015 in my savings account. How is this worth it to me? If I put it into a money market, maybe I earn 2%, at that point I've got an extra $44 at the end of the year. Personally, I would need to be guaranteed at least 4-5% return on that money to make it worth changing, which means I'm likely investing in some sort of mutual fund, with all the associated fees, additional taxes, etc.

Maybe it's worth it, but I can make a single deposit in February when I get my refund and not worry about it every month for a tiny difference in the amount of income i am earning.

Basically, what I'm getting at, is you're absolutely right - the government is making millions off the interest it's earning on money we've all paid in witholding. But the potential benefit to us of changing the behavior is so negligible, I just don't see it changing.