Earn up to 4% on your tax return in a year by putting it in these accounts

Tax season isn’t all bad. Most people actually bring in some extra cash once they file their return — and you can turn that into even more dough in a few simple steps and some patience. 

Among the returns filed in 2025, the average direct deposit refund was $3,230, according to the Internal Revenue Service. While you may be tempted to spend it immediately, you could get more bang for your buck with another strategy: Put it into a high-yield savings account (HYSA), a certificate of deposit (CD) or a money market account (MMA), which have much higher yields than a traditional savings account. 

For example, in a traditional savings account — with an average yield of around 0.39%, according to Experian — you’ll add $12.59 to your balance in one year, for a total of $3,242.59. To be sure, the average interest rate for traditional savings accounts can range from 0.39% to 2.43%.

Meanwhile, a HYSA can offer yields up to 4.21% as of February. Your tax refund from last year could earn up to $135.98 over the course of 2026 in one of these accounts. Here’s what to know about each account and how it can help you earn more. 

High-yield savings accounts  

With an HYSA, you’ll get the flexibility of a traditional account while earning much more. 

You can start an HYSA with a deposit as small as $0. You can also make several free withdrawals each month, so if there is an emergency and you need to pull funds from your account, you can easily access them. However, your rate will adjust frequently — as rates decrease, so will your return. 

EverBank Performance℠ Savings is CNBC Select’s top pick for earning a high annual percentage yield (APY). There are no monthly fees or minimum deposit requirements. Plus, your account comes with an ATM card with no ATM fees. 

However, EverBank has limited retail locations, so you may want to consider another option if you prefer to bank in person.

Certificates of deposit  

With a CD, you’ll lock in your money at a certain rate for a year. While CDs typically offer the same rates as HYSAs, they are more advantageous in a declining-rate environment, allowing you to capture a higher yield for longer. 

The downside of this type of account is that you can’t access the money before the term ends, so these accounts aren’t a good idea if you’re using your return to bolster your emergency fund. You only want to open a CD if you know you won’t need this cash for the term.  

Alliant Credit Union’s CD is a great option if you have at least $1,000 to deposit. It offers an above-average yield with no monthly fees. However, there are no physical locations. 

If your refund is under $1,000, you may want to go with an Ally Bank CD. It has no minimum balance, no monthly fees, and a higher-than-average yield. 

Money market account

An MMA often has all the benefits of a checking account with a higher yield. Most MMAs offer perks like checks and debit cards, so you’ll have easy access to your money. 

A Quontic Bank Money Market Account is a great option, with one of the highest MMA APYs, as well as checks and a debit card. There is no monthly fee but there is a required minimum deposit of $100. 

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties and pride ourselves on maintaining high journalistic standards.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Ross Mannino, a financial adviser and managing director at Ameriprise Financial Services’ advisory practice Wealth Planning Strategies, based in Greenwich, Connecticut. Mannino is a Certified Financial Planner (CFP) and an Accredited Portfolio Management Adviser (APMA), with decades of experience.

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