How Much Could That Money Grow If Saved or Invested in Six States Offering Stimulus?

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The large, generous federal stimulus checks that were distributed to nearly everyone during the pandemic are long gone, but those who wisely invested those funds are still reaping the benefits.

Even so, a few states are still chipping in with their own stimulus packages. According to Forbes, only a half-dozen or so states are sending rebates and other direct payments, and they aren’t nearly as large or widely distributed as the federal checks from 2020-21 — but in times of high inflation and a volatile stock market, every little bit counts.

 

Stimulus Check

 

If you spent your federal stimulus money but live in a state that is still writing checks, this is your chance to invest it rather than spend it this time. Here’s an example of how money from new payments could grow if it was saved or invested rather than spent.

The Most Common Methods of Increasing Your Payment

If you’re fortunate enough to live in a stimulus state, you could be in for a nice windfall. Given their current yields or average returns, here’s how it would grow through the most common investment and savings vehicles.

Now it’s time to find out how those rates and returns will affect the stimulus money being distributed in the six states that Forbes confirms are proceeding with payments. But first, the federal government is considering another round of payments, this time in response to skyrocketing gas prices.

The United States Government

Democratic Reps. Mike Thompson of California, John Larson of Connecticut, and Lauren Underwood of Illinois introduced the Gas Rebate Act of 2022 in March.

It still has to go through the House and Senate before it reaches the president’s desk for signature, but if the bill becomes law, you’ll get $100 every time the national average price for a gallon of gas rises above $4. If you get that $100 for a year, it will cost you $1,200. Here’s how it could develop:

  • Savings account (daily compounding): $1,200.72 after one year
  • CD (daily compounding): $1,218.14 after one year
  • After one year, stocks are worth $1,320.
  • Bonds: $1,574 in ten years

Georgia

Georgia’s government is enjoying a historic budget surplus, and the state is returning a large portion of the surplus to the people. Those who filed tax returns for both 2020 and 2021 are eligible for up to $250 in rebate payments for single filers and $500 for married couples filing jointly. That works out to: for a single filer

  • Savings account (daily compounding): $250.15 after one year
  • After one year, the CD (compounded daily) is worth $250.38.
  • After one year, stocks are worth $275.
  • Bonds: $328 in ten years

Idaho

Eligible Idahoans can queue for their share of a $350 million rebate, which amounts to $75 per person or 12% of their 2020 Idaho state taxes, whichever is greater. Here’s how it could grow assuming $75:

  • Savings account (daily compounding): $75.05 after one year
  • After one year, the CD (compounded daily) is worth $76.13.
  • After one year, stocks are worth $82.50.
  • After ten years, bonds are worth $98.37.

Indiana

Indiana’s governor approved a one-time $125 tax refund for eligible residents after the state, like Georgia, found itself with a sizable surplus at the end of 2021. There are no income limitations, and married couples filing jointly receive $250. Assuming you are a single filer, your investments would look like this:

  • Savings account (daily compounding): $125.08 after one year
  • CD (daily compounding): $126.89 after one year
  • After one year, stocks are worth $138.
  • Bonds are worth $164 after ten years.

Maine

The government of Maine will provide the largest windfall of any stimulus state, with qualifying residents receiving a direct payment of $850. The following is an example of how that could grow if saved or invested:

  • Savings account (daily compounding): $850.51 after one year
  • CD (daily compounding): $862.85 after one year
  • After one year, stocks are worth $935.
  • After ten years, bonds are worth $1,115.

State of New Jersey

The governor of New Jersey approved legislation in 2021 that would provide a $500 one-time rebate check to nearly 1 million Garden State residents. Here’s how New Jerseyans who save or invest their money can see their money grow:

  • Savings account (daily compounding): $500.30 after one year
  • CD (daily compounding): $507.56 after one year
  • After one year, stocks are worth $550.
  • Bonds are worth $640 after ten years.

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State of New Mexico

In New Mexico, the governor signed legislation that includes a series of rebates worth up to $750 for eligible single filers and up to $1,500 for married couples filing jointly. Assuming a single filer, this is how it would develop:

  • Savings account (daily compounding): $750.45 after one year
  • CD (daily compounding): $761.33 after one year
  • After one year, stocks are worth $825.
  • Bonds are worth $960 after ten years.
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