Did you know that using direct deposit is not only the best and fastest way to get your tax refund but also an easy way to save money?
The federal tax refund is often the largest single check many people receive. It’s an opportune time to start or add to your savings. You can divide your refund into two or three additional financial accounts, including your Individual Retirement Account, or purchase up to $5,000 in U.S. Series I Savings Bonds.
Combining direct deposit with IRS e-File is the fastest way to receive your refund. IRS issues more than 9 out of 10 refunds in less than 21 days. You can track your refund using the IRS’s Where’s My Refund? tool.
Find a credit union near you to open an account and receive your deposits.
When you open a new credit union account, you may sign up for various banking services, including direct deposit. Direct deposit lets you authorize specific deposits like paychecks, tax refunds, Social Security checks, and other benefits — to your account.
Using direct deposit allows you to get your money as quickly and safely as possible. You also may pre-authorize direct withdrawals so that recurring bills — like insurance premiums, mortgages, utility bills, and gym memberships — are paid automatically. Be cautious before you pre-authorize recurring withdrawals to pay companies you aren't familiar with; funds from your bank account could be withdrawn improperly. It’s important to monitor your bank account to make sure direct recurring payments take place and are for the right amount.
