Here's How Much You Could Earn by Depositing Your Tax Refund in a CD

If you're expecting a tax refund this year, you may already be counting the ways you could spend it. However, you can also do something nice for "future you" by using your refund strategically. One smart idea? Putting that cash in a low-risk investment account called a certificate of deposit. Whether you're saving for a down payment on a home, planning for retirement or creating a vacation fund, depositing your tax refund into a CD means your money's in a safe place -- and it will grow in value over time. How much can your refund earn in a CD? Let's take a look. Read more: Expecting a Tax Refund? 6 Expert-Approved Ways to Use Your IRS Money This Year To give you an idea of how your tax refund can grow in a CD, here's how much you could earn by depositing the average refund amount -- $3,324, as of March 7, 2025, according to the IRS -- in today's top CDs. (Note: Different banks have different rates, so do some research and compare your options to find the best account for you.) He ... Read full article.