Tax season rolls around every year, and for a lot of families in Monticello, Becker, and Princeton, it brings something exciting: a savings opportunity they didn’t have in January. Whether you’re near Swan Park, Bridgeview Park, or commuting from Big Lake Station, that tax refund check is one of the best chances you’ll get all year to make a real financial move.
So what should you actually do with it?
Don’t Let It Disappear
It’s easy for a refund to vanish before you even notice. A shopping trip here, a dinner out there, and before long it’s gone. That’s why having a plan the moment that deposit hits is so important. Opening or adding to a savings account is one of the simplest, smartest moves you can make with your Minnesota tax refund.
A dedicated savings account separates your refund from your everyday spending money. That alone changes how you treat it. If you’ve been putting off starting an emergency fund or saving for a home in Summit Pointe or the Pines of Monticello, this is your moment.
Put Your Refund to Work with CDs or an IRA
If you want your money to actually grow, look into CD investments or an IRA contribution. A certificate of deposit locks in a competitive rate for a set period, so you’re not tempted to spend it. And if you haven’t maxed out your IRA for the year, a tax refund is a great way to catch up on retirement savings before the deadline.
These are options available right at Sherburne State Bank, with branches on Highway 25 in Monticello, on Sherburne Avenue in Becker, and on North Rum River Drive in Princeton. You don’t need to go far or deal with a big national bank to get solid options.
Consider Paying Down Debt
Debt consolidation is another smart play with a lump sum. High-interest credit card debt costs you every single month. Putting your refund toward that balance, or using it to pay down a personal loan, saves you money long-term even if it’s less exciting than spending it.
If you’re curious whether a personal loan could help you consolidate debt more efficiently, talking to a local lender is worth five minutes of your time. According to the IRS’s guidelines on tax refund planning, using a refund to reduce debt or build savings is one of the most recommended strategies for long-term financial health.
Could Your Refund Be a Down Payment?
Here’s a question worth asking: could your tax refund get you closer to buying a home? For families near Montissippi Park, the Gateway neighborhood, or anywhere in the Princeton area along Highway 169, a refund can serve as the seed money for a future mortgage down payment. Even if you’re not buying this year, putting that money into a dedicated savings account earns interest while you wait.
Make It a Habit, Not a One-Time Thing
The best Minnesota tax tips aren’t complicated: save first, then spend. Even splitting your refund, putting half into a savings account and using the other half for something you need, builds a habit that pays off year after year.
Sherburne State Bank has been helping families in Monticello, Becker, Princeton, and Big Lake do exactly that for over 100 years. You don’t need to figure this out alone. Stop by any of our three branches or give us a call to talk through your options this tax season.
Monticello Bank
1200 State Highway 25 S.
Monticello, MN 55362
Phone: 763-271-7177
Princeton Bank
136 North Rum River Drive
Princeton, MN 55371
Phone: 763-389-4099
Becker Bank
12500 Sherburne Avenue P.O. Box 428
Becker, MN 55308
Phone: 763-261-4200
MEMBER FDIC | EQUAL HOUSING LENDER
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