Announcing federal tax refunds up to 5 days early
3 min read
March 29, 2022 • Spruce
It’s tax season, which means it’s also refund season! But what if you could get your refund sooner? With the Spruce mobile banking app built by H&R Block you can now get your federal tax refund up to five days early when you have your refund deposited directly into your Spruce Spending Account.
It’s easy to take advantage of this new feature no matter where you file your return. Simply indicate at the end of your return that you want your federal refund to be direct deposited to your existing Spruce Spending account. You can find your routing and account numbers in either your Spruce app or online account.
The importance of tax refunds: Insights on consumer intentions
We know how important tax refunds are and why getting yours faster matters. In fact, an H&R Block study* sheds light on just how important refunds are to consumers and why many see them as a significant financial event.
Specifically, the study shows that 53% of all consumers spend their tax refund on everyday bills, and 39% use it to pay down debt – the two top ways refunds are spent.
Consumers see tax refunds as a financial reset
With bills and debt reduction topping the ways people spend their refund, it’s easy to see why 70% of consumers believe tax refunds make a good tool to get caught up on finances. Despite this, 41% of consumers often feel conflicted about how they should be spending or saving their tax refund.
However, many don’t have a plan for their tax refund
A third of consumers don’t have an intentional plan of how they’ll spend their refund, but 45% are open to advice on the matter. Here’s where Spruce can help further.
It’s our mission to help people be good with money and your refund can be an important stepping stone on your path to improving your financial health. After your federal tax refund arrives, Spruce will prompt you to designate a portion of your refund to savings as part of a tax refund recommendation, helping you to jumpstart your chosen saving goal.
For those with a plan, setting up emergency funds tops saving goals
According to the survey, 73% of those who struggle financially intend to save some or all of their refund. And for all consumers who saved their tax refund, more than a third of them (37%) cited an emergency fund as the top purpose for their saving.
How Spruce helps you be intentional with your refund and finances
Tax refunds are a major moment for your finances. Let Spruce help you make the most of it. Getting your federal refund faster and helping you establish a plan to put your best financial foot forward. Whether you use your refund to kick start an emergency fund or other savings goal, we’re ready to help you.
Don’t have a Spruce account yet? Get started.
* Research conducted by H&R Block and Qualtrics Surveys, 2,000+ adults ages 18+, Fielded Sept. 15-21, 2021.
This information provided for general educational purposes only. It is not intended as specific financial planning advice as everyone’s financial situation is different.
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