Four Wise Uses of Tax Refund Dollars
Tax season often comes with a financial bonus in the form of a tax refund. Instead of letting that extra cash slip through your fingers, why not put it to work for you? At The Peoples Bank, we want to empower the people of the Mississippi Gulf Coast with advice for smart financial strategies.
Once you take care of shorter-term needs, consider investing portion of your refund for the long-term with one of these strategies:
Here are some impactful ways to make the most of your tax refund this year:
Boost Your Savings
A great first step is to direct a portion of your tax refund into savings. At The Peoples Bank, we offer the option to split your refund direct deposit into multiple accounts. This eliminates the temptation to spend the money impulsively and helps you prioritize long-term goals. If you need an emergency fund or even if you’re saving for a future milestone, this money can give you peace of mind. Plus, the interest you’ll earn over time is like giving yourself an extra reward. For account choices go to: thepeoples.com and select the Personal tab.
Pay Down Debt
High-interest debt can drain your finances. It’s tough to deal with expenses like credit card balance, student loans or medical bills, especially if they carry high interest rates. Use your tax refund to make a lump sum payment toward these debts. By reducing your balance, you’ll save on interest and pay off the debt faster. At The Peoples Bank, we can help you decide the best way to handle this debt.
Start a College Fund
If you’re a parent or grandparent, consider using your tax refund to contribute to a college fund. Not only are you helping your loved ones avoid student debt, but you could also qualify for tax deductions along the way. At The Peoples Bank, we have several options to help you save for a loved-one’s college.
Open a Brokerage Account
Consider opening a taxable investment account if you’ve maxed out your retirement contributions or have other financial goals. The Peoples Bank Asset Management and Trust division partners with trusted advisors who can guide you to invest your tax refund in stocks, bonds, mutual funds or exchange-traded funds. Over time, these investments have the potential to grow and provide you with a valuable return.
Partner with The Peoples
Your tax refund is an opportunity to make meaningful progress toward your financial goals. At The Peoples Bank, we’re committed to helping you maximize your resources and achieve financial success. Our team is here to assist if you need guidance on savings strategies, debt repayment, or investment opportunities.
Visit a branch convenient to you or call us today to learn more about how we can help you put your tax refund to work. Together, let’s build a stronger financial future.