- Options for Customers Without Bank Accounts
Options for Customers Without Bank Accounts
If you want to receive your refund by direct deposit, but you don’t have a bank account, you have several options:
Open a low- or no-cost bank account. We recommend you work with your local community bank or credit union and open a low- or no-cost account with no minimum balance requirement. In fact, there are even online financial institutions where you could open an account. If you choose this alternative, you can save your progress in your current tax return, go and open your bank account, and return to TurboTax to give us your account information and still receive you refund electronically via direct deposit. Other questions you may want to ask include does the financial institution:
- Accept consular identification cards as primary ID
- Waive one set of overdraft fees per client
- Provide Individual Development Accounts (IDAs), which are dedicated savings accounts targeted specifically to low-income working families. These accounts can be matched from public, non-profit, and/or private sources.
Note: IDAs generally provide matches of between one and three dollars for every dollar a participant contributes to his or her account. The match is usually managed by community-based organizations. The use of IDA savings is generally restricted to post-secondary education, business capitalization, and home ownership.
Try using a pre-paid debit card you already have. You may already use a pre-paid debit card for direct deposits (for instance, your paycheck may be deposited by your employer on one of these cards). If so, you can take advantage of direct deposit capabilities within TurboTax without needing a bank account. You’ll need to enter the bank name, routing number, and account number associated with your debit card into TurboTax when it asks you for direct deposit information. Contact your card issuer for more details about how to locate this information. Any fees you traditionally pay with that card would apply.
Choose a check. You can always choose to receive your refund by check, whether you're printing or e-filing. Note that a check takes longer to arrive than if you choose e-file and direct deposit.
One more thing: You may have heard that having your refund direct deposited into someone else's financial account is an option. However, this may not be the most prudent option. Also, be aware that many banking institutions will only accept a direct deposit from the IRS if the name on the refund matches the name on the account. If the bank rejects the deposit, the IRS will instead send out a check, possibly delaying your refund.
