--- title: Three Reasons to Put Your Tax Refund into a Savings Account description: This article outlines three reasons why you should put your tax refund into a savings account rather than spending it on frivolous items. image: https://www.liveoak.bank/hubfs/Blog%20Featured%20Images/three-reasons-to-save-tax-live-oak-blog-post-800x400.jpg --- ![FDIC-Insured - Backed by the full faith and credit of the U.S. Government](https://www.liveoak.bank/hubfs/LiveOakBanking_July2020/fdic-digital-sign-whitetxt.svg) [![Live Oak Bank](https://www.liveoak.bank/hubfs/raw_assets/public/LiveOakBanking_July2020/images/live-oak-logo-full-color.svg "Live Oak Bank")](https://www.liveoakbank.com/) Log In - Business - [Loans](https://www.liveoak.bank/business-loans/) - [SBA](https://www.liveoak.bank/business-loans/sba-loans/) - [USDA](https://www.liveoak.bank/business-loans/usda-loans/) - [Live Oak® Express](https://www.liveoak.bank/business-loans/live-oak-express/) - [Banking](https://www.liveoak.bank/business-banking/) - [Checking](https://www.liveoak.bank/business-checking/) - [Savings](https://www.liveoak.bank/business-savings/) - [CDs](https://www.liveoak.bank/business-cd-accounts/) - Personal - [Banking](https://www.liveoak.bank/personal-banking/) - [Savings](https://www.liveoak.bank/personal-savings/) - [CDs](https://www.liveoak.bank/personal-cd-accounts/) - [Commercial](https://www.liveoak.bank/commercial/) [![Live Oak Bank](https://www.liveoak.bank/hubfs/raw_assets/public/LiveOakBanking_July2020/images/live-oak-logo-full-color.svg "Live Oak Bank")](https://www.liveoakbank.com/) - Business - [Loans](https://www.liveoak.bank/business-loans/) - [SBA](https://www.liveoak.bank/business-loans/sba-loans/) - [USDA](https://www.liveoak.bank/business-loans/usda-loans/) - [Live Oak® Express](https://www.liveoak.bank/business-loans/live-oak-express/) - [Banking](https://www.liveoak.bank/business-banking/) - [Checking](https://www.liveoak.bank/business-checking/) - [Savings](https://www.liveoak.bank/business-savings/) - [CDs](https://www.liveoak.bank/business-cd-accounts/) - Personal - [Banking](https://www.liveoak.bank/personal-banking/) - [Savings](https://www.liveoak.bank/personal-savings/) - [CDs](https://www.liveoak.bank/personal-cd-accounts/) - [Commercial](https://www.liveoak.bank/commercial/) - [Log In](https://www.liveoak.bank/?modal=signIn) - [Get Started](https://www.liveoak.bank/get-started/) Sign In × Personal Banking & Small Business - Tidal Business Checking - Business Savings & CDs - Personal Savings & CDs [Sign In](https://secure.liveoak.bank/login) [Open a New Account](https://www.liveoak.bank/get-started/) Commercial Banking - Business Plus Checking - Business Plus Savings & CDs - Treasury Management [Sign In](https://online.liveoak.bank/DigitalBanking/login?iid=LOBNC) [Contact Us](https://info.liveoakbank.com/business-plus-form) Business Loans - Manage Payments - Get Statements - Continue an Application [Sign In](https://loan-servicing.liveoak.bank/login) [Contact a Loan Specialist](https://www.liveoak.bank/get-started/form-contact-loan-specialist/) # You are about to leave the Live Oak Bank website. **Disclaimer:** This link will take you to a website outside of the Live Oak Bank site. The new site may offer a different privacy policy and level of security. Live Oak Bank is not responsible for the products or services that are offered or expressed on other websites. Yes, I understand. Please Continue [Resource Center](https://www.liveoak.bank/blog) / [Business Banking](https://www.liveoak.bank/blog/tag/business-banking) # Three Reasons to Put Your Tax Refund into a Savings Account Written by Live Oak Bank ![Three Reasons to Put Your Tax Refund into a Savings Account](https://www.liveoak.bank/hubfs/Blog%20Featured%20Images/three-reasons-to-save-tax-live-oak-blog-post-800x400.jpg) Better savings than your big bank. Convenient digital access, superior customer support, no maintenance fees and one of the best interest rates in the country! [Get Started](https://info.liveoakbank.com/business-savings?RefId=blog) With tax season in full swing, many people will be receiving a refund after filing their returns. While it may be tempting to go spend that cash on frivolous items that bring you joy in the moment, consider tucking that money away into a [savings account](https://www.liveoak.bank/business-banking/business-savings/). There are countless benefits to having a personal savings account and we’re breaking down the top three reasons below. ### 1. Start or build your emergency fund The importance of an emergency fund cannot be overstated. We all know that unexpected expenses pop up – from unforeseen car repairs to emergency medical bills, and even sudden unemployment. Experts say that ideally, you should have six to 12 months’ worth of living expenses stashed away for unpredictable events. If you receive a tax refund, regardless of how much, this is a great way to start your emergency fund or add to an existing account. [According to the IRS](https://www.cnbc.com/2021/04/14/tax-refunds-are-the-highest-on-average-for-people-in-these-states.html#:~:text=Why%20you're%20getting%20a%20refund&text=This%20year%20through%20April%202,size%20so%20far%20is%20%242%2C893.), the average tax refund is $2,893 as of April 2021. Think about how much peace of mind you could have with over $2,000 tucked away, specifically for emergency situations.   ### 2. Grow your money with competitive interest rates When you [open an account](https://www.liveoak.bank/business-banking/business-savings/) with Live Oak Bank, you can trust that your dollars are earning money, not just sitting idle. With competitive interest rates, there are no minimum balance requirements for savings accounts and the online opening process is simple. If there are any roadblocks, our North Carolina-based customer support team can help guide you through the process. ### 3. Work towards long-term savings goals Emergency funds are imperative for unexpected happenings, but it’s also wise to intentionally save up for costly items you know are coming your way. Think about expenses like a down payment for a home or car, college tuition for your kids or even your retirement nest egg. Even if you tuck a small amount into a [Live Oak Bank savings account](https://www.liveoak.bank/business-banking/business-savings/) – that’s something! If you do receive a tax refund, tucking it away is the first step in your long-term savings strategy. **Tags:** [Business Banking](https://www.liveoak.bank/blog/tag/business-banking), [Personal Banking](https://www.liveoak.bank/blog/tag/personal-banking) ### Related Resources ### [![Why You Should Register Your Business](https://www.liveoak.bank/hubfs/Blog%20Featured%20Images/why-register-your-business-live-oak-blog-post-800x400.jpg) Small Business Why You Should Register Your Business 4 minute read](https://www.liveoak.bank/blog/why-you-should-register-your-business) ### [![The Basics of Business Resilience](https://www.liveoak.bank/hubfs/Blog%20Featured%20Images/business-resilience-live-oak-blog-post-800x400.jpg) Manage My Business The Basics of Business Resilience 4 minute read](https://www.liveoak.bank/blog/the-basics-of-business-resilience) ### [![remote deposit capture vs mobile deposit](https://www.liveoak.bank/hubfs/26-LOB-Blog-Posts_Blog%20Assets-RDC%20vs%20MD-Blog-Post-Image.jpg) Grow My Business Mobile Deposit vs Remote Deposit Capture: Which is Right for Your Business? 8 minute read](https://www.liveoak.bank/blog/mobile-deposit-and-remote-deposit-capture) ### Subscribe via Email We're committed to your privacy. 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