Treasury to send out fast cash from tax refunds on prepaid cards
The Treasury is trying out a pilot program to save a little fast cash on disbursing tax refunds this year. People who don’t elect direct deposit could receive a prepaid debit card in lieu of a traditional paper check. They will also be able to hold onto and keep using the card.
New way for the Treasury to save a little fast cash
The United States Treasury has announced a pilot program for tax season that concerns how people receive tax refunds, according to CNN. When people file income tax returns, they can elect to receive a direct deposit of their funds or choose a paper check that they’ll receive in the mail . This year, those who don’t choose direct deposit of fast cash for their tax refund or don’t have a bank account could be alerted to the a new option. More than 600,000 taxpayers who make $35,000 or less annually will be informed that they could receive their refund on a prepaid MyAccountCard from Visa if they choose.
The tax refund card
People who chose the debit card option will have their tax refunds deposited into an account, and receive a prepaid debit card by mail. Taxpayers who want to can hang onto the funds as savings in case they need a loan until payday or until they finally book a trip out to Mississippi to visit relatives. The cards are being issued by Bonneville Bank, and the Treasury will be working with the GreenDot company on the pilot program. People can keep reloading and using the card as long as they wish.
Terms of the card
The tax refund card will be just like any other preloaded debit card. There will likely be an annual service fee and various fees for withdrawing money and so forth. The program could save the government a lot of money. Each direct deposit costs the government a dime, but each paper check costs about a $1.