This is the time of the year when many people start thinking about their taxes, and if they are lucky, what they are going to do with their refund check (or direct deposit, if you elect to have your refund sent that way). According to the Internal Revenue Service, the nation’s taxpayers received an average tax refund of nearly $3,000 in 2015. This year, while more than 70 percent of tax payers await their hefty refund, Astra Bank is highlighting five tips to help them make the most out of this year’s windfall.

“Tax season is a great time for consumers to reassess how they allocate extra cash,” said Kyle Campbell, Astra Bank’s President & CEO. “It’s wise to take steps toward securing your financial well-being like storing your refund for rainy days or using it to get a jumpstart on saving for retirement.”

To help consumers make the most out of their money, Astra Bank has highlighted the following tips:

• Save for emergencies.  Open or add to a high-yield savings account that serves as an “emergency fund.” Ideally, it should hold about three-to-six months of living expenses in case of sudden financial hardships like losing your job or having to replace your car.
• Pay off debt.  Pay down existing balances either by chipping away at loans with the highest interest rates or eliminating smaller debt first.
• Save for retirement. Open or increase contributions to a tax-deferred savings plan like a 401(k) or an IRA.  Where can you get one?  Your bank can help set up an IRA, while a 401(k) is employer-sponsored.
• Put it toward a down payment.  The biggest challenge that most first-time home buyers face is coming up with enough money for a down payment. If you intend to buy a new home in the near future, putting your tax refund toward the down payment is a smart move.
• Invest in your current home.  Use your refund to invest in home improvements that will pay you back in the long run by increasing the value of your home.  This can include small, cost-effective upgrades like energy-efficient appliances that will pay off in both the short and long term. If you have more substantial renovations in mind, your bank can help with a home equity line of credit.

We hope these tips have helped give you some ideas on what to do if you are lucky enough to get some money back from Uncle Sam this year. Remember, if you have questions about what makes sense for your individual financial situation, give us a call or mail usor stop by one of our convenient branch locations. We’ll be happy to help!