What people do with their tax returns and stimulus checks


AMARILLO, Texas (KFDA) – Today is the last day to file your taxes, and Amarillo banks have seen trends throughout the pandemic in how people have used their tax returns, stimulus checks and soon child tax credit payments.

There have been three rounds of stimulus checks and Amarillo National Bank says each time consumers have spent and saved money differently.

The bank said that in the first round of stimulus checks, 75% of people spent the money.

Then in the second and third rounds of stimulus checks, about half used it to pay down debt rather than spend it.

“Usually people repair their toll. They’ll want to make sure their debt is at a comfortable level, and once that happens, they might have to spend a little more …. So we’re starting to see it. People’s balance sheets are improving and they start borrowing more and more because they feel their jobs are a little bit more secure, and again, that’s a generalization. There are a lot of people still struggling, ”said Matt Ramsey, senior vice president and chief investment officer at Amarillo National Bank.

Interest rates are low, so people with businesses are taking action as the economy returns and consumers now have more opportunities to make larger purchases.

“Interest rates are very low, so people who borrow money either for investing, whether you are a corporation or a business and want to increase the supply you are able to meet the demand that is given and the reverse would be if you are a consumer. So if you’re a consumer, these low interest rates help you borrow to buy a boat, a house, or a vehicle or something, ”Ramsey said.

Happy state bank tells NewsChannel 10 that it has seen an increase in deposits during the pandemic. The Amarillo National Bank also finds the same thing.

“We have seen good growth in our deposits. Again, many tax policies have allowed people to get back the money they’ve saved, we have benefited from it. In addition to the low interest rates, we have also benefited from it and on the lending side. So we see a healthy track record, ”Ramsey said.

Ramsey says the tax deadline extension hasn’t affected the way people spend and save money.

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