Best Ways to Use Your Tax Refund

Smart options for using your tax refund.

Before getting carried away with the extra money from your refund, take stock of your current financial standing and your near and long-term goals. Where does putting your tax refund make the most sense? Here are some options to consider.

Start an Emergency Fund

An emergency fund is important in case you ever find yourself in a time of need - having to pay for unexpected expenses, home repairs, medical or dental expenses, major car repairs or even unemployment. Rather than relying on high-interest loans or credit cards, you'll have a buffer ready to help keep you afloat. Consider setting aside 3 - 6 months of living expenses for when you need it.

How to do it:

• If you are just starting, set aside the amount to cover an important bill, like rent, mortgage, or utilities.
• Choose a savings account with a high interest rate, such as Apple Bank's Simple Savings Account and take advantage of the Simple Banking Program for an even higher preferred interest rate.¹
• Calculate the amount you want to save and set a monthly savings goal.
• Set up automatic transfers from your checking to your savings to help ensure you reach your goal. 

Pay Down Your Debt

Living with debt can be a major source of stress. While paying down large debt takes time, using your tax refund to help pay down a portion of it can help you make progress more quickly.

How to do it:

• Focus on paying down the debt with the highest interest rate first, then move on to the account with a lower rate.
• Setting up automatic bill payments each month from your checking account to pay down the debt can help keep you on track. With a checking account that earns interest, such as Apple Bank's Simple Checking Account, you can use the extra income to help pay down debt more easily.

Save For Your Future​

If you see buying a home, planning a wedding, or paying for a child's education in your future, putting your tax refund towards your long-term savings goals can help you reach them.

How to do it:

• Choose a savings account with a high interest rate, such as Apple Bank's Simple Savings Account or our high- yield Choice Money Market Account.
• Set up automatic transfers from your checking account to your savings account to help ensure you reach your goal.
• If you can set a lump sum aside for a set term, consider a Certificate of Deposit to help you save at a competitive rate and keep you from tapping into the funds in the near term.
• If you're saving for an education, consider an Apple Bank SmartStart Savings Account or a tax-advantaged 529 College Savings Plan.

Get your refund faster

The quickest way to receive your tax refund is with direct deposit. Having your refund directly deposited into your account allows you to access the funds and put them to use sooner. With your bank routing and account numbers on hand, you can set up direct deposit at the time you file your taxes. Apple Bank’s Routing and Transit number (226070584) can be found at the bottom of our homepage, and your account number can be found on your statement or in Online Banking.

¹ You will be automatically enrolled in the Simple Banking Program once you have established a Simple Checking account (anchor account) and a Simple Savings account (benefit account). Customers who maintain a Simple Checking and a Simple Savings account and meet the monthly transaction requirements for the Simple Checking account will be eligible to receive an interest rate that is 0.50% higher (preferred interest rate) than the then current interest rate in effect for the Simple Savings account(s). The Primary owner of the Simple Checking account must be a Primary or Secondary owner of the Simple Savings account (benefit account) and complete five (5) qualifying credit and/or debit transactions (minimum $25.00 per transaction) per month for the account to be eligible to receive the preferred interest rate. If you do not meet the qualification requirements in any monthly evaluation period, the preferred interest rate will be reduced to the then current Simple Savings interest rate in effect on the day after evaluation date. The Simple Banking Program allows for one (1) Simple Checking account which may be linked to multiple Simple Savings accounts for the purpose of receiving the preferred interest rate when the required activity in your Simple Checking account is met.

A qualifying transaction for purposes of receiving the preferred interest rate of this Program means a credit or debit of $25 or more in your Simple Checking account from: an electronic transaction such as direct deposit, bill payment, or automatic payment made through ACH (automated clearing house) or a transfer system that sends electronic payments in real time; a transfer to or from an account at another financial institution; Person-to-Person payments (P2P), such as Zelle; or a purchase using your Visa Debit Card. Credit or Debit transactions by any other means (e.g., deposits or withdrawals at an ATM and/or in-person at a branch or transfers between your accounts at Apple Bank) do not qualify as a transaction for purposes of meeting the eligibility criteria for the preferred interest rate.

Benefits Evaluation Period: The benefits evaluation period (“evaluation period”) is determined by the statement cycle date (currently month end) of your Simple Checking account. The Bank will evaluate the transactions conducted on your Simple Checking account to determine if you will receive the benefit during the evaluation period. The evaluation period begins three (3) business days before your statement cycle date (the date on which your account statement is produced) and ends three (3) business days prior to the following statement cycle date.