Most savings accounts—and similar places to park your cash, such as money market funds—require that you pay taxes on the interest that you earn. A few types of savings accounts and other financial instruments are exceptions to this rule and might be worth considering if you are seeking ways to reduce your tax bill and stretch your savings.
There are two ways that savings accounts can reduce your tax bill. Some accounts let you deposit pre-tax money, reducing your taxable income in the year you make the contribution.
