I’d rather keep more money from each pay check than get a big refund

Not only does it ensure that I won't have to owe, it means something I am saving for actually gets saved for. Just an easy way to save a decent amount and be sure it doesn't get squandered instead of saved.

I do the same by direct depositing a portion of each paycheck into a money market account. Then after a year, I get all that money plus interest — after paying taxes of course.

Whatever works! I had considered that. It's having the required minimum to start that can be difficult if you don't have it. I have been saving more the past year though, and would like a better savings option. Maybe you just talked me into checking into it. I suppose you get taxed on the interest?

Yes, interest is concidered part of your income but it usually isn’t enough to affect your tax bracket.