How Direct Deposit Helps you Get your Refund and Stimulus Checks ASAP

Want your tax refund as quickly as possible? Make sure you have direct deposit set up.

Having a bank account set up and ready to receive your tax refunds electronically means you can access your money as quickly as possible. In normal years, the IRS estimates that you will receive your tax refund 1–3 weeks if you file electronically and accept direct deposit, or in 6–8 weeks if you receive your refund by paper check. That means with direct deposit, you will receive your refund nearly 2 months earlier! That’s a huge difference, and will likely be even bigger this year.

Use direct deposit to get your refund and stimulus funds as quickly as possible.

This year, receiving your refund as a direct deposit is even more important. Because of the pandemic, the IRS is also busy handling all of the stimulus payments. There will be delays in receiving both your tax refund and your stimulus payments if you receive them by paper check. Enrolling in direct deposit allows the IRS to make that payment to you as soon as they have reviewed your returns, ensuring you get your money as fast as possible. You can track the status of your refund on the IRS website here.

Don’t have a place to deposit your refund?

We know that many people in the United States face hurdles when it comes to finding and opening the right bank accounts to help them meet their financial goals. At Let’s Get Set we want to make sure everyone receives the right resources, knowledge and support to do this. That’s why we offer free tools to help you maximize your tax refunds and find the best no-fee savings accounts to put aside a piece of your refund and start making progress towards your savings goals.

Split your refund — earmark some for savings!

Another way to make progress against your goals is to split your refund into multiple accounts, so you automatically deposit a piece of it somewhere that is “out of sight, out of mind”. You can use Form 8888 to split your refund between multiple accounts. So, for example, if you want to put aside $1,000 to hit a savings goal (or any amount $1 or above), you can have those funds automatically deposited into one account, while the rest can head to your standard bank account for use on bills and expenses.

I get that direct deposit could help me, but what exactly is it?

It’s a simple, safe, quick way to receive your money on your own terms, whether that’s your social security, tax refunds or paychecks. Simply, direct deposit is when you receive your paycheck or other payments directly into your bank account, rather than as paper checks that you then have to deposit yourself.

How can direct deposit help me throughout the year — not just at tax-time?

It might seem like a small change, but being enrolled in direct deposit offers many benefits that help you manage and save your money. You can use it to receive funds through paychecks, social security, and refunds, and can also use it to pay bills (like utilities) if you choose. Almost all employers offer this option and signing up for it is easy — it typically just requires filling out a short form provided by your employer. Ask your HR department (or whomever else oversees payments at your company) and they will be able to guide you through the set up. Here’s why we like it:

1. It’s faster: You have access to your funds the moment they hit your bank account on payday. You don’t need to wait to receive the check, find time to go to the bank to deposit it, and then wait for the deposit to become available. Instead, it’s just there when you need it, instantly.
2. It’s safer: There is no risk of you losing your check or multiple other people seeing your account information. Your employer does the deposit for you electronically through a secure payments network.
3. It makes savings easier: With direct deposit, you are also able to request that a portion of each paycheck be deposited into multiple accounts, so you can start saving instantly with every paycheck without even thinking about it. For example, you may direct that for each paycheck, 95% is deposited into your primary checking account and 5% deposited directly into your savings account, helping you automatically build up your savings without even thinking about it.
4. It gives you additional perks: Many banks and credit unions also provide you with added benefits if you enroll in and make recurring direct deposits into your accounts. Often, this means higher interest rates, cash back rewards, waived fees or access to other products, among other benefits.

Again, to set up direct deposit, you first need a bank account, so if you need help identifying one, check out our savings page, or email us at info@letsgetset.co. We are here to help!