Two of the smartest things you can do with your income tax refund are repaying debt and beefing up your savings.

But suppose your loans and cards are paid off and your savings accounts are already flush. How then should you deploy your tax refund?

Here are five interesting ideas to consider:

1. Buy CDs

With interest rates on the rise, bank certificates of deposit (CDs) can be a smart way to set aside additional savings and earn a higher return than a standard savings or checking account. If you expect to need the money for another purpose relatively soon, choose shorter-term CDs. Longer-term CDs are appropriate for funds you plan to invest but haven't yet allocated to specific opportunities.

Grouping CDs with staggered maturities into a CD "ladder" is a time-tested way to minimize the risk of early-withdrawal penalties if you later need the money sooner than you'd expected.

2. Open a Second – or Third – Retirement Account

Your 401(k) doesn't have to be your only vehicle for your retirement savings. Even with a 401(k), you can also open one or more IRAs or Roth IRAs for yourself and your spouse. Contribution limits for 2023 are $22,500 for a 410(k) and $6,500 for an IRA or Roth IRA. If you're 50 years old or older, you can add an additional $7,500 to a 401(k) and $1,000 to an IRA.

Even if your contributions aren't fully tax-deductible, you'll be boosting your retirement savings. Multiple accounts can give you more flexibility in your investment choices and more control over the timing of your taxable withdrawals after you retire.

Multiple accounts can also be useful for estate planning purposes and to ensure that all of your funds are fully covered by deposit insurance.

3. Buy Long-Term Care Insurance

It's no secret that long-term care can be very costly. A long-term care insurance plan can offset some of that expense and help you protect the assets you accumulated throughout your lifetime from being depleted as you age.

This type of insurance typically pays a daily or monthly benefit to help you and your loved ones afford the care you need for a certain period of time.

Your insurance advisor can help you compare policies to find one that fits your budget and offers attractive benefits for your anticipated future needs.

4. Refinance Your Mortgage

Refinancing your mortgage may seem an unlikely financial goal when interest rates are higher than they have been in recent years. But there are good reasons to refinance even if you end up with a higher rate.

For example, you may want to replace an adjustable rate with a fixed rate, shorten or lengthen your payoff term, remove a former spouse from your loan, or cash out equity to pay off other debt or finance home repairs or improvements.

With your tax refund to pay your closing costs, you may be able to refinance with no other costs out of pocket.

5. Grow Your Side Hustle

A side hustle lets you turn your hobby into an income stream and start a small business that could one day replace your day job.

Investing your tax refund in supplies, office furniture, a website, or a personal assistant for a few hours each week could help your side gig ramp up faster. Save your receipts for expenses you may be able to deduct to lower your tax liability this year.

Investing your refund in your side hustle could also give you fresh insights into how well your small business might perform with even more financing, such as a small business line of credit or home equity loan.

When it comes to the best way to utilize your tax refund, you do have options. Consider these ideas – or use them as inspiration – to empower you to put your refund to work today to improve your financial tomorrow.

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