Tax filing season can be a stressful time for a lot of people. Luckily, there’s something positive they can look forward too during this time: the possibility of receiving a tax refund.

An individual can receive an average of $1,952 from the IRS. And while this may not be a life-changing amount, it’s still a sizable return that people can put to good use. Here are four smart places to put a tax refund in.

A Certificate of Deposit

For those who won’t be needing the money immediately, opening a certificate of deposit (CD) is a good idea. Doing so would allow a person to grow their tax windfall through interest rates. Money could be kept in this financial vehicle from as short as three months to as long as five years. Getting a CD is typically fee-free and can be as easy as opening a savings account.

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A High-Yield Savings Account

Likewise, putting the tax refund in a high-yield savings account is advisable, especially for people who are planning to make a down payment soon. Choosing a savings account is preferable than a checking account as the latter only offers negligible growth.

There’s also the temptation of having accessible cash on hand. People are advised to go for accounts that can give them up to 20 times more interest than a traditional savings account.

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A Retirement Account

One can also put their tax refund money towards a long-term financial goal such as retirement. It’s recommended to add the amount to an individual retirement account (IRA). These tax-advantaged investment accounts can either be Roth or traditional.

People can contribute up to $6,000 to both kinds, while those who have the former can add an extra $1,000 if the account holder is over 50 years old.

A Brokerage Account

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Lastly, people can invest their tax refund in the stock market. Although much riskier than putting money in a savings account, going this route does offer more growth.

And compared to a retirement account, money in the stock market is more liquid. To mitigate the risk of investing, make sure to choose the right bonds and stocks to put money in and how much is placed in each.