Impact of federal withholding change

This week's paycheck is the first showing my new withholding. I had previously claimed only one federal exemption but now I am claiming 4. The difference is about $74 every two weeks. Starting next month I am going to add that to my savings each paycheck.

I did not change my state withholding so I expect to still get a $1,200 refund next year. My federal refund will be in the $3,000 to $3,500 range instead of $5,300 like it was this year. I think the extra $74 will do more for me sitting in a savings account then as a future tax refund.