Isn't That Rich Podcast

You’ve filed your taxes, the refund has hit your account (or is on its way), and now you're staring at that deposit thinking: "What should I do with this?"

If your first thought was to purchase everything in your Shein cart or to take a spontaneous road trip, you're not alone. But what if—just what if—you made that money work a little harder for you this year?

We’re breaking down smart, strategic, and yes, still fun ways to use your tax return so it doesn’t vanish by May. We’re talking about options that can grow your money, reduce stress, and build the kind of financial momentum that lasts longer than a shopping spree.

First, What Is a Tax Refund Really?

Let’s clear up one common misconception: your tax refund isn’t a bonus from the government. It’s not “extra” money. It’s money you already earned—you just overpaid the IRS throughout the year and now you’re getting it back.

That’s great news! But it also means this money deserves to be treated like part of your paycheck. So instead of spending it the second it lands in your account, ask yourself: How can I make this money work for me?

Here are some ideas.

1. Open a Short-Term CD

If you’re not planning to spend your refund immediately, consider parking it in a certificate of deposit (CD). Think of a CD as a secure little time capsule: you stash your money in it for a set period—like 6 or 12 months—and it earns a fixed interest rate while you leave it alone.

Most banks offer competitive CD rates right now, and you don’t need a massive amount to get started. Many CD options have a $500 or $1,000 minimum, making this a perfect spot for a smaller refund.

Bonus tip: If you start a 6-month CD in April, you’ll unlock those funds just in time for back-to-school season—or for an end-of-summer trip.

2. Join a Christmas or Vacation Club

Planning ahead for the holidays or a family getaway? A Christmas Club or Vacation Club savings account is a great way to grow your refund with purpose.

Here’s how it works:

• You open the account and deposit a chunk of your tax refund.

• You (ideally) set up automatic transfers from your checking account to keep adding to it.

• The account often earns more interest than a regular savings account.

• Right before the holidays or summer vacation season, the bank mails you a check or transfers the funds.

You get to enjoy the holidays or your trip with cash you already set aside—no credit cards, no stress, no regrets.

3. Maximize Interest with a Kasasa Cash® Account

If you're looking to make your tax refund work harder for you, consider the Kasasa Cash® account at Farmers State Bank of Alto Pass. This high-yield checking account offers an impressive 3.00% APY on balances up to $10,000 when you meet the monthly qualifications.

How to Qualify for 3.00% APY:

To earn the highest interest rate, the following activities must post and settle to your Kasasa Cash® account during each Monthly Qualification Cycle:

• At least 1 direct deposit or ACH payment

• At least 12 debit card purchases

• Enrollment in and agreement to receive e-Statements

• Enrollment in and login to online banking and/or mobile banking

When you qualify, you’ll also get up to $20 in nationwide ATM withdrawal fee refunds each month.

Additional Details:

• Balances over $10,000 earn between 3.00% and 0.50% APY depending on your balance.

• If qualifications aren’t met, all balances earn 0.05% APY.

• No minimum balance required to earn rewards.

• No monthly maintenance fees.

• $100 minimum deposit to open.

It’s a great way to earn high interest while still keeping access to your money. And if you really want to maximize your return, pair your Kasasa Cash® with a Kasasa Saver® account for even more savings potential.

Learn more here.

4. Start an Emergency Fund

This might not be flashy, but it is essential. If you don’t already have an emergency fund, your tax return could help you build one.

Start with $1,000 in a separate savings account—ideally one that’s not linked to your everyday spending. That way, when your tire blows or your water heater dies, you’re not going into panic mode.

We recommend even hiding the account in your online banking app so it’s truly “out of sight, out of mind.”

5. Save for Real Estate Taxes

Every year, real estate taxes hit homeowners like a surprise, even though we all know they’re coming. What if, instead of scrambling to pay them, you set the money aside now?

Use your refund to open a dedicated savings account labeled "Real Estate Taxes" and automate a monthly transfer. You’ll thank yourself when tax bills show up and you’re ready—not rattled.

6. Pay Off High-Interest Debt

If you’re carrying credit card debt, this one’s a game-changer.

Let’s say you’re paying 20–30% interest on that debt. Even if your investments are earning 10% (which would be incredible), you’re still losing ground. Paying off that high-interest debt with your tax refund is like getting an instant return on your money.

Free up your future. Ditch the debt.

7. Contribute to a Roth IRA

Want to set yourself up for future financial freedom? Open or contribute to a Roth IRA. You pay taxes now on the money you put in, but you don’t pay taxes on the growth or withdrawals later (once you reach retirement age).

Even if you only add $500 this year, that money compounds over time—and could grow into something huge for Future You.

8. Start a 529 College Savings Plan

If you have kids (or plan to), a 529 savings plan is a smart way to invest in their education. Your contributions grow tax-free and can be used for tuition, books, housing, and even some private K-12 education costs.

Start small, build consistently, and your tax return could jumpstart a future degree.

9. Make an Extra Loan or Mortgage Payment

If you have a mortgage, car loan, or student loan, applying your refund as an extra principal payment could shave months—or even years—off your loan term. That means you’ll pay less interest overall and own your home or car sooner.

One extra payment a year really adds up over time.

10. Invest in Yourself

And finally, maybe it’s time to invest in you. That could mean:

• Signing up for an online course

• Getting a certification

• Attending a professional development event

• Starting a side hustle

Your tax return could be the seed money that launches your next big thing. Sometimes the best ROI comes from believing in yourself.

Don’t Let It Slip Away

Tax refunds are one of the few times a year you get a lump sum of your own money back. This year, try using it differently—strategically. You don’t have to give up fun entirely, but even putting a portion toward something purposeful can help you build momentum toward your financial goals.

So the next time you see a sign telling you to blow your tax refund on something shiny and new, pause. Think about how much peace you could buy instead—with savings, a plan, and a little bit of future thinking.

Make your money work harder—because you worked hard for it.