The IRS recently announced automatic payments for around one million eligible taxpayers who missed claiming the 2021 Recovery Rebate Credit.
If you didn’t get your full stimulus payment before, you might now be eligible for up to $1,400.
Married couples could receive up to $2,800, and families of four might get as much as $5,600. The best part? You don’t need to do anything to claim it.
The IRS will identify those who qualify and send payments automatically. These could come as direct deposits or mailed checks sometime this month.
If you’re wondering how to make the best use of this money, here are smart strategies to help you grow your payment and make it work harder for you.
1. Open a High-Yield Savings Account
Putting your stimulus payment in a high-yield savings account is one of the simplest ways to earn a solid return.
Some accounts currently offer interest rates as high as 4.75% APY, far better than traditional banks that may pay less than 0.50%.
High-yield savings accounts allow you to deposit and withdraw your money at any time, so your funds stay accessible.
You don’t need to lock up your money for a specific period, making it a flexible option for growing your savings.
Here’s an example:
- If you receive a $1,400 payment and deposit it into an account with a 4.75% APY, you could earn around $67 in interest after a year.
2. Try a Money Market Account
Money market accounts work similarly to savings accounts but come with one extra feature: the ability to write checks.
If you want quick access to your funds with this added convenience, this could be a better fit for you.
Right now, some of the top money market accounts offer rates as high as 4.85% APY, which is even better than most savings accounts. That means your money could grow even faster.
3. Consider a Certificate of Deposit (CD)
If you can manage without spending your stimulus payment for a while, a Certificate of Deposit (CD) could offer a higher return.
CDs typically pay more than savings and money market accounts because you agree to keep your money locked in for a specific period, such as three months, a year, or longer.
One big advantage of CDs is their fixed rates. While savings accounts can change interest rates anytime, CDs lock in your rate for the entire term.
Some CDs are currently offering rates as high as 5.50% for an 8-month term, making them an excellent option if you want to secure a high return.
If you deposit $1,400 into a CD with a 5.50% APY for eight months, you could earn about $203. That’s a noticeable increase just for leaving your money untouched.
Potential Earnings on Stimulus Payments
Here’s a simple breakdown of how much you could earn by depositing your stimulus payment into a savings account, money market account, or CD:
| Payment Amount | Savings Account (4.75% APY) | Money Market (4.85% APY) | 8-Month CD (5.50% APY) |
|---|---|---|---|
| $1,400 | $67/year | $68/year | $203 (8 months) |
| $2,800 | $133/year | $136/year | $406 (8 months) |
| $5,600 | $266/year | $272/year | $812 (8 months) |
How Do we identify the best savings options?
We monitor rates from more than 200 banks and credit unions every day to help find the best options for your savings. Only federally insured institutions (FDIC for banks, NCUA for credit unions) are included in our lists, ensuring your money stays protected.
Accounts must also meet criteria such as having no excessive deposit requirements and being accessible in at least 40 states.
Take Advantage of Your Stimulus Payment
Whether you’re getting $1,400, $5,600, or even more, using smart savings strategies can help your money grow.
Consider opening a high-yield savings account, a money market account, or locking in a great rate with a CD to maximize your financial benefits.
With these options, your stimulus payment could become more than just a one-time boost—it could be a step toward building a stronger financial future.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
