Educational
7 Ways To Make The Most Out Of Your Tax Refund
March 4, 2025
Are you expecting a tax refund this year? Congratulations! You’ve got a golden opportunity to give your finances a boost. Instead of splurging on something impulsive, consider using your tax refund to create a stronger financial foundation. Here are 7 smart ways to use your tax refund this year:
1. Pay Off High-Interest Debt
If you have outstanding debts with high interest rates, such as credit card balances, consider using your tax refund to pay them off. This will save you money in interest payments and free up your monthly cash flow.
2. Build an Emergency Fund
Having a cushion of savings can provide peace of mind and protect you from going into debt when unexpected expenses arise. Aim to save 3-6 months’ worth of living expenses in an easily accessible savings account.
3. Invest in Your Future
Whether you’re just starting out or nearing retirement, it’s always a good time to save for your future. Using your tax refund to contribute to an IRA or 401(k) can provide significant tax benefits and help you grow a robust retirement fund.
4. Save for a Big Purchase
Do you have a big-ticket item on your wish list, such as a down payment on a house or a new car? Use your tax refund to get closer to your goal!
5. Enhance Your Skills
Invest in yourself by using your tax refund to take a course, attend a conference, or pursue a certification that can enhance your career prospects!
6. Build Your Investment Portfolio
Harness the power of your tax refund to fuel long-term financial growth by investing in the stock market or other investment vehicles. Use this extra cash to purchase stocks, bonds, or mutual funds, and watch your portfolio grow over time.
7. Upgrade Your Home
Home improvements can increase the value of your property and enhance your living experience. Use your tax refund to tackle those long-awaited home projects. Peoples Savings Bank offers home equity loans and lines of credit to help finance your renovations.
Start Growing Your Savings With PSB
If you’re saving toward a specific goal, open a dedicated savings account to house those tax refund funds and discourage you from dipping into them. We also offer certificates of deposit (CDs), which are a great way to earn more on your money than a traditional savings account. Our CDs are:
- FDIC-insured, up to $250,000 per depositor
- Variety of time frames to meet your needs
- Interest can be chosen to be added to the CD or automatically deposited into a checking or savings account
Not sure how to get started? Contact our financial experts today! We’re happy to help.
Take the First Step Towards a Stronger Financial Future
Don’t let your tax refund slip away. Use it to create a stronger financial foundation and achieve your long-term goals. Visit our website or stop by one of our branches to learn more about our Super Savers Account and start building a brighter financial future.