What to Do with Your Tax Refund: 5 Smart Ways to Make the Most of It

Make the most of your tax refund with five smart, practical strategies to save, plan ahead, and strengthen your financial foundation this year.

2 min read

Hancock Whitney

For many households, a tax refund feels like a well-earned financial exhale — a moment when things finally feel a little easier. And this year, that sense of relief may be even stronger, as many Americans are expecting larger-than-normal refunds. It’s the perfect opportunity to pause and make thoughtful choices about how that money can work hardest for you.

At Hancock Whitney, we encourage you to think of a tax refund not as “extra” money, but as an opportunity — one that can strengthen your financial foundation while still allowing yourself a little enjoyment along the way.¹

1. Enjoy a Little — and Protect the Rest

A smart rule of thumb when you receive a lump sum, including your tax refund, is simple: spend a little, save a lot.

Treat yourself to something meaningful — maybe a small trip, a home upgrade, or a memorable family experience. Steer clear of short-lived splurges that fade quickly. Then set aside the bulk of your refund for goals that will last well beyond this season.

This balanced approach lets you enjoy the moment without sacrificing long-term peace of mind.

2. Put Your Refund to Work — Not on Hold

Once you’ve decided how much to save, the next step is deciding where to put it. Leaving a large refund in a low-earning account can mean missed opportunity — especially in today’s rate environment.

Two smart, low-risk, high-value options to explore include:

Certificates of Deposit (CDs)

CDs are ideal when you don’t need immediate access to your funds. They offer competitive rates, guaranteed growth, and can help you reach near-term financial goals with confidence.

Priority Money Market Accounts

If flexibility matters, a Priority Money Market account provides easier access to your money while still earning more than a traditional savings account. It’s a great choice for emergency funds or planned expenses coming up later in the year.

Both options help ensure your refund continues working for you long after tax season ends.

You may also want to consider an added incentive. If you’re opening new accounts as part of your savings strategy, you may be able to amplify the impact of your refund even further. When you open a Freestyle Checking and Savings account together at Hancock Whitney and meet qualifying requirements, you can earn a cash bonus of up to $600.²

3. Build or Replenish Your Emergency Fund

Your tax refund can be a powerful catalyst for strengthening your financial safety net. It’s an opportunity to build or replenish your emergency fund, giving you more protection against life’s unexpected twists and everyday financial stress. Adding even a portion of your refund to your emergency fund can help cover unexpected expenses — without disrupting your day-to-day finances.

When choosing where to keep emergency savings, accessibility matters. A savings account designed for flexibility, such as a Freestyle Savings Account, can make it easier to set funds aside while still keeping them available when you need them. With easy ways to waive the $5 monthly service charge and easy digital access, it can be a practical option for building and maintaining an emergency fund.

4. Offset Rising Everyday Expenses

With costs rising for groceries, gas, and other essentials, using part of your refund to offset everyday expenses can provide real breathing room — helping you stay ahead without leaning on credit or draining other savings.

5. Prepare for Future Opportunities or Unexpected Events

Whether you’re planning for a major expenditure, such as a home improvement or a new vehicle, building toward retirement, or simply preparing for whatever comes next, your tax refund can help you move forward with confidence — without derailing other priorities. A thoughtful approach now can support your financial momentum well into the year.

Make This Year’s Refund Count

Thoughtful choices today can ease financial stress and create clarity moving into the rest of the year. And you don’t have to figure it out alone — a quick conversation with a Hancock Whitney banker can help tailor these ideas to your unique goals, whether you're focused on growth, flexibility, or simply more peace of mind.

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¹Hancock Whitney does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only.

²Important details and required qualifying activities for the Freestyle Checking and Freestyle Savings offers: Use the required promo code when opening your new checking and/or savings account by the offer expiration date of 6/30/2026. The email given at account opening must match the email address submitted to get the offer promo code. Receive a $300 bonus when you open a Freestyle Checking account and set up and receive a total of $3,000 or more in direct deposits within the first 90 days of opening. Receive a $100 bonus when you open a Freestyle Savings account and deposit $5,000 within 30 days of opening and maintain a $5,000 minimum daily balance for 60 days. Receive an additional $200 bonus when you open both accounts at the same time and meet all requirements. If you meet all requirements listed for either account or both, we will deposit the earned bonus and additional bonus if applicable into your new personal checking account and/or savings account within 135 days of opening your new accounts. The checking bonus will be applied to the checking account, while the savings bonus and additional bonus (if applicable) will be applied to the savings account.

Account(s) must be open and with a positive balance at the time of bonus award, otherwise bonus is forfeited.

Offer available to new Hancock Whitney checking clients 18 years of age or older. This includes new to bank clients and existing Hancock Whitney clients who currently do not have a checking account, or have not recently closed a checking account in the past 90 days, or did not have a checking account closed with a negative balance in the past 3 years.

A qualifying direct deposit is a recurring electronic payment, such as payroll, pension, Social Security, or other government or monthly income, made by an employer or external agency. It does not include transfers between your own accounts, non-recurring payments from services like Zelle, PayPal or Cash App, tax refunds, stimulus payments, wire transfers or deposits made at a branch, ATM, by mail, mobile device, or online transfer.

The Bank may change or discontinue the offer at any time and without notice. This offer is non-transferable and cannot be combined with other offers. Only the person to whom this offer is addressed is eligible for this offer. Limit of one consumer savings-related bonus and one consumer checking-related bonus per household every 2 calendar years and a household lifetime maximum of 2 checking and/or 2 savings bonuses. Bonuses may be considered interest and may be reported on IRS Form 1099.

Freestyle Checking and Freestyle Savings Account Terms and Conditions: A $25 minimum deposit required at account opening for each account. If the checking account is closed within the first 180 days after opening, a $20 closing service charge is assessed and we reserve the right to deduct the bonus amount from the account closing balance. Your new savings account will have a $20 early closure service charge applied to the available balance for the first 180 days. If savings account remains open beyond 180 days, the early service closure charge is released and added back to the available balance. Refer to the Freestyle Checking and Freestyle Savings, Truth in Savings Disclosures for additional details, all applicable fees and information on your new accounts. Refer to the Freestyle Checking and Freestyle Savings Truth in Savings disclosures for details regarding applicable fees and additional information on your new accounts.

Freestyle Checking $10 monthly service charge can be waived by the following: primary account holder under 18 or age 64 and over with a valid date of birth on file, or have one or more client-initiated debit or credit transactions post to the checking account per statement cycle.

Freestyle Savings $5 monthly service charge can be waived by the following: primary account holder under 18 or age 64 and over with a valid date of birth on file, or have a minimum daily balance of $250.00 or more, or have one or more client-initiated debit or credit transactions post to the savings account per statement cycle Fees may reduce earnings.

APY (Annual Percentage Yield) is accurate as of 01/30/2026.

Minimum Collected Balance	Interest Rate	APY (Annual Percentage Yield)
$0.00 - $9,999.99	2.23%	2.25%
$10,000.00 - $24,999.99	2.47%	2.50%
$25,000.00 - $100,000.00	2.72%	2.75%
$100,000.01	0.05%	0.05%

You will receive the additional bonus amount of $200 if you open both accounts at the same time and meet all requirements and it will be deposited into your checking account by 5/31/2026.