How to get your tax refund faster and be smart about spending it

If you feel like you’ve been living paycheck-to-paycheck, you’re certainly not alone. But take heart that there’s some good news looming on the horizon. 

Tax refunds are headed our way, and they will likely be even larger than usual. The final average for the 2024 tax year was $3,151, a sum that’s big enough to move the needle for many households.

For the 2025 tax year it’s expected to be even higher than that, potentially by up to $1,000, thanks to a number of new provisions in the so-called ‘Big Beautiful Bill’.

That means, for many people, it will be one of the larger checks they see over the course of 2026. And that’s an opportunity you don’t want to waste.

“When people receive a windfall, whether it’s a tax refund, bonus, or family gift, the smartest move is to be intentional before the money disappears into everyday spending,” says Adam Wojtkowski, a financial planner with Copper Beech Wealth Management in Mansfield, Mass.

“Handled well, a windfall isn’t just extra cash. It’s a chance to reset priorities and enter 2026 with more clarity, confidence, and momentum.”

Splurge on something silly, and you’ll be right back where you started. But use it wisely, and you can make progress on multiple financial fronts at once – and set yourself up for success for the rest of 2026.

Tax refunds aren’t the only kind of windfall that can reshape your financial outlook for the year. Maybe you received a holiday gift from a family member, for instance. Or perhaps your annual work bonus is about to get distributed: The median bonus amount for American employees is $1,786, according to ADP Research.

Wherever it’s coming from, a start-of-year financial windfall is an event you want to take full advantage of, which includes choosing a financial institution that will get your funds to you as quickly as possible. When you receive your tax refund on Current, you can receive your money up to five days faster than a traditional bank.*

Keep in mind that with such a significant sum, it’s not an all-or-nothing choice. You can juggle multiple worthy goals, and see immediate progress on all of them, which should help sustain your momentum for the rest of the year.

Some smart ways to put a windfall to use:

-Saving it. Easier said than done, of course. But if you are able to put some refund money aside, it will pay off in numerous ways – in handling future unexpected expenses, in making bigger goals like a home down payment possible, even in giving you some psychological peace of mind.

Indeed, when credit agency Experian surveyed people about how they were going to use their refunds, saving it came out on top, as the choice of 31% of respondents.

“Any time you get a bonus or a tax refund, the first question should be: ‘Should I top off my emergency fund?’ ” says Mike Zarrelli, a financial planner with FSA Wealth Partners in Rockville, MD. “When the market’s down or life throws a curveball, cash gives you options.”

Of course, you don’t want that money sitting and earning nothing. You’ll want to look for an account that offers a high earning rate on your cash. On Current, for example, members can earn up to a 4.00% annual bonus on money in their Savings Pods.

-Paying down debt. It’s always smart to chip away at what you owe. That’s why 21% of respondents in the Experian survey said this was the ideal route for their refund cash.

But some debt is more urgent to attack, a distinction occasionally referred to as ‘good’ debt (such as, a home mortgage at a reasonable rate) versus ‘bad’ debt. If your credit card bills are spiraling out of control at 20%-plus interest, for instance, that’s exactly the kind of debt you want to wrestle to the ground – and would be an excellent use of your refund.

-Covering everyday expenses. It’s no secret that our daily bills are going up and up, as the nation grapples with persistent inflation (the latest figures clocking in at 2.7% over the last year). So if a refund helps allay the costs of those necessities, and helps you avoid putting it all on plastic, that’s a perfectly good use of a windfall.

In fact, that kind of everyday banking can even help build your credit score. For example, with a secured charge card like Current’s Build Card, members’ monthly payments for their charges can help build their credit score with these on-time payments reported to the three major credit bureaus (Equifax, Experian and TransUnion). Members have an average credit score increase of 81 points after six months of using the Build Card.

-Investing. If you want your windfall to have true long-term impact, then consider investing at least a portion of it – which was the choice of 10% of people in the Experian survey.

That investment could take a variety of forms: Perhaps in retirement-oriented accounts like a 401(k) or IRA, or in a taxable brokerage account, or even crypto if it interests you. On Current, members can buy and sell dozens of coins without trading fees.

“Think about future you,” advises Wojtkowski. “That could mean increasing retirement contributions, investing toward a longer-term goal, or setting aside money for an upcoming expense so it doesn’t become a source of stress later. Even modest investing can be powerful when it’s done consistently and thoughtfully.”



*Early access to tax refunds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 5 days earlier than the scheduled payment date.