DES MOINES, Iowa—Iowa consumers anticipate receiving about the same tax refund in 2015 as in 2014 and most plan to put it in savings, according to a recent survey by the Iowa Credit Union League (ICUL).
The statewide survey of more than 1,100 Iowa credit union members and consumers showed that 40% of Iowans surveyed are expecting a tax refund about the same as last year’s, while 28% are expecting a smaller refund. Twenty-one percent are not expecting a refund whatsoever.
More than 50% of those Iowans expecting some type of refund, including the 9% anticipating a larger refund this year, are planning to put it into savings.
The Iowa league noted that the new findings continue last year’s trend according to the National Retail Federation’s 2014 annual survey, which found that 46% of American consumers expecting a refund last year saved it as opposed to making a large purchase or paying down debt. It was the highest level of anticipated saving in the survey’s eight-year history.
“It is not uncommon to see a significant spike in member deposits beginning in late January and extending into March,” said Jim Niederhauser, VP, member services at ICUL. “Once the weather warms, credit union members tend to allocate their deposits towards consumption. But it is interesting and encouraging to see a trend where the deposits remain in their accounts with the credit union for a longer period of time.”
In Iowa, 45% of respondents plan to use their refunds to pay off debt and only 4% plan to splurge on a large purchase.