Consumer bureau launches webpage on using tax refunds for savings

The Consumer Financial Protection Bureau (CFPB) launched a webpage this week to with resources to help taxpayers save their refunds.

“Tax time is a great opportunity to take that first important step of building your savings,” a CFPB official said in a statement Wednesday. “Increased savings can enhance a consumer’s financial well being.” 

The webpage includes information encouraging taxpayers to save their refunds, and details various types of accounts in which taxpayers can deposit their refunds for savings.

“For many people, making ends meet throughout the year is tough, and saving regularly may seem unrealistic,” the CFPB said on the page. “The money you get in your tax refund could help you build or replenish your rainy day fund.”

The webpage also includes information about options for free and affordable tax filing and tips for people to protect themselves from tax fraud.

The CFPB’s webpage on saving tax refunds is part of an initiative it launched last year to encourage consumers to create and grow emergency-savings accounts. 

More than 70 percent of taxpayers received refunds last year, as is typical, and the average refund amount through Dec. 27 was $2,869.

This year’s tax filing season began Jan. 27, and individual returns are due April 15.