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Working Americans will soon see a big economic boost in the form of tax refunds – and not a moment too soon, as economists are predicting higher inflation rates this year due to the impact of the Iran war on energy prices (1).
Thanks to changes related to President Donald Trump’s One Big Beautiful Bill Act, up to $100 billion in tax refunds could hit bank accounts in the first quarter of 2026 (2).
Treasury Secretary Scott Besant said in December 2025: “The bill was passed in July. Working Americans didn’t change their withholding, so they’ll get a much bigger refund in the first quarter. So I think we’ll see $100 to $150 billion in refunds, which could be between $1,00030 ($2003) per household.”
After that, once the withholding level was adjusted, workers could see what was described as a “real increase” in their wages.
For many households, this raises the immediate question: What is the smartest way to use the sudden cash infusion?
Whether you’re thinking about downsizing your finances, preparing for uncertainty or putting that extra money to work, here are some ways Americans can consider investing their potential windfall.
According to data released by the IRS on March 6, 2026 (4), early filers are already on the rise compared to last year. Of the 60.7 million individual returns received by that date, the average payment is $3,676, up from $3,324 last year (5).
And while it can be tempting to spend the windfall, especially as prices rise, stashing cash in an emergency fund can be one of the best ways to use your refund.
“When you’re broke, your life sounds like a country song,” says veteran financial guru Dave Ramsey (6). “Emergency Fund Turns Crisis into Inconvenience.”
However, it’s important to keep your emergency fund in an account where it can grow, so that inflation doesn’t eat away at the value of your savings.
If you’re looking to build an emergency savings fund, a high-yield savings account is another possible place to start. While the national interest rate average is 0.40% APY, online banks can offer you very competitive returns.
A high-yield account like the Wealthfront Cash Account can be a great place to grow your uninvested cash, offering competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash account currently offers a base APY of 3.30% through program banks, and new customers can get an additional 0.75% increase in their first three months of up to $150,000 for a total variable APY of 4.05%.
That’s ten times the national deposit savings rate, according to the FDIC’s March report.
Additionally, Wealthfront is offering new customers who enable direct deposit ($1,000/month minimum) into their cash accounts and open and fund new investment accounts an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be up to 4.30%.
With no minimum balance or account fees, plus 24/7 withdrawals and free domestic wire transfers, your funds are always accessible. Plus, you get access to up to $8M FDIC insured eligibility through program banks
You can also check out the Moneywise list of best high yield savings accounts 2026 and find an offer that matches your savings goals.
Read more: I’m almost 50 and have no retirement savings. Is it too late?
The US stock market has been a powerful engine of wealth creation. Over the past three years, the S&P 500 has delivered an annualized return of approximately 17% (7).
Of course, picking consistently winning stocks isn’t easy. That’s why legendary investor Warren Buffett argues that most people don’t need to choose individual companies to benefit from the long-term growth of the stock market.
“In my opinion, for most people, the best thing to do is own an S&P 500 index fund,” Buffett famously said (8).
This approach gives investors exposure to a wide range of industries across 500 of America’s largest companies, providing immediate diversification without the need for constant monitoring or active trading.
The beauty of this approach is its accessibility – anyone, regardless of wealth, can benefit from it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference—your spare change—in a diversified portfolio.
That morning coffee for $4.25? This is now a 75-percent investment in your future.
Even better, with Acorns, you can invest Buffett’s advice in the S&P 500 ETF for as little as $5 — and if you sign up today with a recurring deposit, Acorns will add a $20 bonus to help you start your investment journey.
Beyond stocks, real estate has long been another cornerstone of wealth building in America.
In fact, Buffett often points to real estate when explaining what a productive, income-producing asset looks like. In 2022, he said that if you offered him “1% of all apartment buildings in the country” for $25 billion, he would “write you a check (9).”
Why is he so excited about real estate? Because, given what’s going on in the broader economy, people still need a place to live, and rents can generate rent money on an ongoing basis.
What’s more, real estate also provides an inherent hedge against inflation. When inflation rises, property prices often rise, reflecting higher costs of materials, labor and land. At the same time, rental income increases, providing landlords with a revenue stream that adjusts to inflation.
Of course, you don’t need $25 billion to invest in real estate — or to buy a single property. Crowdfunding platforms like Arrive offer an easy way to gain exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrive allows you to invest in rental properties for as little as $100 without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you want to buy and then sit back as you start receiving any positive rental income distributions from your investment.
For a limited time, when you open an account and add $1,000 or more, Arrival will credit your account with a 1% match.
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CNBC (1), (5), (8), (9); Tax Foundation (2); @NBC10Philadelphia (3); IRS (4); @EveryDollar (6); S&P Global (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
