7 Smart Ways to Spend Your Tax Refund


If you are like many Americans, you’ll be getting a nice chunk of change back from your tax return…yay for free money!  Except, it’s not free money.

Your tax refund is actually your hard-earned money that the government was simply holding interest free for the past year, so you may want to put that money to work for you.

Here are some great suggestions for putting your tax refund to work for you all year long:

  • Build an emergency fund. In these challenging economic times, most people live paycheck to paycheck. That makes managing unexpected expenses, such as car or home repairs difficult to manage. One way to protect yourself from unexpected expenses or losses in income is to have an emergency fund in a liquid savings account.

Learn more about our Savings Accounts

  • Reduce debt. Do you have higher-interest credit card, auto loan, or other debt? Consider using your tax return to pay down your debt. It’s always wise to pay off the highest-interest debt first.


  • Make home improvements. Does your home need new windows or a new roof? Consider using your tax return money to finance these important home improvements, which can add value to your home.


  • Make an energy-efficient purchase. Use your refund to purchase energy-efficient appliances, such as a dishwasher, dryer, or refrigerator, which can save you money all year long.


  • Start a college savings plan. If you have children, consider using the funds to open an Education IRA or 529 college savings plan. Once you open the plan, arrange to invest in the fund on an ongoing a basis. Even a small amount of money each month will add up over time.

Learn more about MNB Investments

  • Save for retirement. If you don’t have a retirement plan through your employer, consider opening an Individual Retirement Account (IRA) with your refund check. Be sure to check with your tax advisor first.


  • Pre-pay your mortgage. If you want to reduce the term of your loan and the amount of interest you will pay over the life of the loan, consider putting the funds from your tax return down on the principal of your mortgage.

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As your hometown bank, we look forward to helping you through the many stages of life, from your savings account to your retirement account. We've helped generations of families buy their first home, finance their vehicles, and plan for the future. Let us put our experience to work for you and your family.