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
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.
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:
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.
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
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.
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.
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.
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.