Why your tax refund belongs in a high-yield EverBank account

A tax return is a set of forms you file annually with the government (in the U.S., that’s the IRS) to report your income, expenses, and other relevant financial information. It calculates your tax liability and determines if you owe additional taxes, or if you are due a refund for overpaid taxes.

A tax refund is money the government gives back to you because you paid more in taxes than you actually owed. It’s basically a reimbursement of your own money. You get it after filing your tax return and showing you overpaid.

For many people, a tax refund can feel like a bonus check—tempting to spend right away. But putting that money into a high-yield account with a competitive annual percentage yield (APY), like the EverBank Performance^® Savings account (featuring a 3.90% APY for new accounts)^x , the EverBank Performance Money Market account (featuring competitive rates that vary by location), or the EverBank Performance CD (featuring a 4.00% APY on a 7-month CD)^x can turn a one-time deposit into long-term financial strength.

• High-yield savings account (HYSA) – Unlike traditional savings accounts, HYSAs offer significantly higher interest rates, allowing your refund to grow simply by sitting there. It’s also a good option if you only need to access your money via online transfers.
• Money market account – A high-yield money market account is a good place to put your tax refund because it pays higher interest rates than a regular savings account while keeping your money easily accessible via debit cards and checks for when cash is needed, similar to a checking account.
• High-yield CD – CDs lock in a guaranteed interest rate, helping your money grow steadily for a set term. They can also prevent impulsive spending by keeping the funds inaccessible until the term ends.

Start by looking at your priorities. Take time to consider how you can make your money work harder for you to help you achieve your overall financial plans this year. One option would be to pay down high-interest debt to avoid ongoing payments that can drain your finances. Another option would be putting your tax refund into a high-yield account to help you:

A high-yield account is one of the best places to build an emergency fund. With a HYSA or money market account, your money is accessible and earns more interest than a standard savings account. Both of these options can provide security and growth, and can help keep you prepared for emergencies—whether it’s an unexpected car repair or a sudden medical bill, having cash available can prevent you from turning to high-interest credit cards or loans.

Directing your refund into a high-yield account immediately can also help curb impulsive spending. Setting up an automatic transfer or designating a high-yield account for your tax refund ahead of time keeps the money out of your checking account—and out of reach of impulse purchases. This small behavioral shift transforms a refund from fleeting spending money into a long-term financial resource; especially if you use it to open a CD, which locks in your money for the duration of your chosen term.

Saving your refund also brings you closer to larger goals. Whether you're saving for retirement, education, a home purchase or an emergency fund, the higher interest of a HYSA, money market or CD helps you get there faster. Instead of vanishing on small expenses, your refund becomes the foundation for something more meaningful.

Ultimately, putting your tax refund into a high-yield savings, money market or CD account is about reducing financial stress and building future stability. It turns an annual income boost into ongoing progress—keeping your money secure today while strengthening your financial tomorrow. And because these accounts are FDIC insured, your deposits are backed by the federal government up to allowable limits, adding an extra layer of safety to your savings.

Visit everbank.com/banking to see our full suite of high-yield accounts, and let’s make the most of your tax refund and money.

Related article: How to choose a HYSA

EverBank, N.A. (EverBank) is a nationwide specialty bank providing high-value products and services to consumer, business and commercial clients coast-to-coast. As a pioneer in online banking, we offer convenient digital access for clients 24/7, in addition to phone-based support and a network of financial centers across California, Florida and New York. EverBank’s commitment is to deliver to our clients high-performing, high-yield solutions backed by exceptional service. Connect and interact with us on Facebook, Instagram, LinkedIn or X. EverBank is a Member FDIC.