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Jing Pan
Updated Feb 19, 2026
With tax season now underway, working Americans may soon see a financial windfall, according to President Donald Trump — and he says it’s all due to one piece of legislation.
“Tax Refunds this year, because of ‘THE GREAT BIG BEAUTIFUL BILL,’ are substantially greater than ever before,” Trump wrote in a recent post on Truth Social. “In some cases, estimates are that over 20% will be returned to the Taxpayer.”
Experts do expect refund amounts to trend higher this season. A study by investment firm Piper Sandler projects that refunds could average about $1,000 higher than usual this year.
According to the IRS, taxpayers generally have until April 15 to file their returns. Those who file electronically and opt for direct deposit typically receive refunds within three weeks.
Trump offered a characteristically simple piece of advice to taxpayers expecting a larger check.
“Don’t spend all of this money in one place!” he wrote.
For many households, that raises an immediate question: What’s the smartest way to use a sudden cash infusion?
Whether you’re thinking about shoring up your finances, preparing for uncertainty or putting that extra money to work, here are a few ways Americans may consider investing their potential windfall.
Let your cash hatch its own income
Parking your refund in a traditional checking account may feel safe, but it’s not doing you any favors. Many big banks still offer interest rates as low as 0.01%, which means your money is actually losing value due to inflation.
Moving your money to a high-yield account puts your cash to work. A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%².
That's ten times the national deposit savings rate, according to the FDIC's March report³.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase⁴ with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
If you’re comfortable with locking your cash in for six months or a year for a higher rate, consider a Certificate of Deposit (CD).
A platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
To help you save smarter, CD Valet provides free, specialized tools.
- Earnings calculator: See exactly how much interest you’ll accrue by the end of your term. Adjust different rates and terms to see how much you can earn with a 12-month vs. a 24-month CD.
- CD rates map by state: See real-time offers of the best CD rates across the country. Many institutions allow you to open an online account, so you can take advantage of a great CD rate without being located in that state.
Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.
‘The best thing to do,’ according to Warren Buffett
The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, recently saying that “the only thing that’s really going up big? It’s the stock market and your 401(k)s.”
The benchmark S&P 500 returned 16% in 2025 and has gained roughly 75% over the past five years.
Of course, consistently picking winning stocks isn’t easy. That’s why legendary investor Warren Buffett argues that most people don’t need to pick individual companies at all to benefit from the stock market’s long-term growth.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated. This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today with a recurring deposit, Acorns will add a $20 bonus to help you begin your investment journey.
Protect your wealth with a time-tested safe haven
If a larger refund is headed your way, putting a portion into hard assets that have stood the test of time could be a strategic move — especially in uncertain economic environments.
As Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, recently said, “the most important thing is to have a well-diversified portfolio.”
And when it comes to hedging against “bad times,” he has repeatedly pointed to one asset in particular: gold.
In an interview with CNBC, Dalio said that “people don't have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”
Gold has long been considered a go-to safe haven. It can’t be printed out of thin air like fiat money and because it’s not tied to any single currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value.
Despite a recent pullback, gold prices have climbed more than 70% over the past 12 months.
Other prominent voices see further potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
This chart shows the price of gold over the past five years. If you want to see whether opening a precious metals IRA is the right investment to diversify your portfolio, download a free info guide.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Pay down high-interest debt
Using your refund to wipe out high-interest debt can immediately improve cash flow and reduce financial stress.
Paying off a credit card with a 24% interest rate is like earning a risk-free 24% return. The money you would have otherwise lost to interest stays in your pocket.
If you can’t pay off your entire balance with your tax refund, consider looking into debt consolidation through a personal loan at a much lower interest rate.
Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month.
Platforms like Credible help streamline this process by allowing borrowers to compare personal loan offers from multiple lenders in one place, making it easier to identify lower-rate options without applying to each lender individually.
Through Credible's online marketplace, you can comparison-shop for the lowest interest rates with just a few clicks.
In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.
If you owe more than $30,000 and you’ve already tried debt consolidation, you may want to see if you qualify for a debt relief program to help clear a significant portion of your balance.
With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
They can also help negotiate settlements with your creditors until all enrolled debt is resolved.
Get expert guidance
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance — which means the best move for someone else might not be the best move for you.
If you’re unsure where to start, it might be the right time to get in touch with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your particular financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
Strengthen your family’s safety net
Life insurance often gets pushed to the bottom of the to-do list. But using part of your refund to secure coverage can provide lasting peace of mind.
Providers like Ethos offer fast, competitive quotes for term coverage tailored to your specific needs.
The application can take as little as 10 minutes. Most applicants won’t need blood work or an in-person exam — just answer a few basic health and lifestyle questions.
Using real-time data, Ethos can often deliver an instant quote and, in many cases, same-day approval. You may be able to get up to $2 million in coverage, starting at just $2 per day.
Jing Pan
Investment Reporter
Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
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