With tax season upon us, the IRS will be issuing tax refunds over the coming months. Direct deposit is the fastest way to receive your refund. For those who don’t use a bank account or prefer an alternative, a debit card can be used to receive electronic transfer of a refund. With this in mind, here are the best prepaid debit cards for tax refunds in 2022 (including for 2021 tax returns).
In the best of times it takes longer to receive a tax refund via paper check than it does by direct deposit. With Covid-19 affect both the IRS and the USPS, however, the IRS reports that it’s taken even longer to receive paper tax refunds. It’s no surprise than that 80% of taxpayers receive their refund by direct deposit.
In addition to getting your refund faster, there are two other benefits of direct deposit. First, once the IRS has your direct deposit information, they can use it to issue any future stimulus check payments. Second, and what many don’t know, is that you can have your refund deposit in up to 3 different accounts. You can split your refund to go to up to 3 accounts using tax preparation software or IRS Form 8888 (allocation of refund).
Whether you choose one, two or three accounts for your refund, here are prepaid debit cards and alternatives ideal for direct deposit of a tax refund.
Tax Refund Prepaid Debit Cards
Netspend Prepaid Visa Card
With the Netspend Prepaid Visa Card, you can get your refund faster than with a paper check. Once deposited, you can spend your refund with the Netspend card, transfer it to a bank account, or save it with Netspend’s high-yield savings account option. You can also set up online bill pay.
- *Monthly Fee ranges from $0 to $9.95 depending on plan chosen and other factors.
- With Direct Deposit, you can get paid faster than a paper check.
- No late fees or interest charges because this is not a credit card.
- Use the Netspend Mobile App to manage your Card Account on the go and enroll to get text messages or email alerts (Message & data rates may apply).
- Card use is subject to activation and ID verification. Terms and Costs apply.
- Card issued by MetaBank® N.A., Member FDIC. Card may be used everywhere Visa debit card is accepted.
- Get your tax refund direct deposited to your account and no more waiting in line to cash your check!
- See additional Netspend® Visa® Prepaid Card details by clicking Apply Now
PayPal Prepaid Mastercard®
For those who use PayPal, the PayPal Prepaid Mastercard® is ideal for tax refunds. You can transfer money from your PayPal account to the prepaid card at no cost.
- Move money from your PayPal account
- Take advantage of PayPal Payback Rewards and earn on qualifying purchases from select merchants.
- With Direct Deposit, you can get paid faster than a paper check.
- Card issued by The Bancorp Bank, Member FDIC. Card may be used everywhere Debit Mastercard is accepted.
- Get your tax refund direct deposited to your Card Account and stop waiting in line to cash your refund check
- Click PayPal Prepaid Mastercard® for additional features & program details, and to request a Card.
Brink's Prepaid Mastercard®
Brink’s has been securing valuables since 1859. In addition to accepting direct deposit of a tax refund, the Brink's Prepaid Mastercard® gives you access to a mobile app to monitor your account and initiate transactions. Setting up the tax refund requires just the Brink’s routing number and account number, both of which Brinks will provide to you.
- Brink’s gives you the peace of mind you deserve. Securing cash and valuables since 1859.
- With Brink’s Direct Deposit, you can get paid faster than a paper check.
- No late fees or interest charges because this is not a credit card.
- Use the Brink’s Money Prepaid Mobile App to manage your Card Account on the go and enroll to get text message or email alerts (Message & data rates may apply.)
- Subject to card activation and ID verification. Terms and Costs Apply. Issued by Axos Bank®, Member FDIC. Click for full details.
- Get your tax refund direct deposited to your Card Account and no more waiting in line to cash your paper check!
- See additional Brink’s Prepaid Mastercard® Details.
Western Union® Netspend® Mastercard® Prepaid Card
The advantage with the Western Union® Netspend® Mastercard® Prepaid Card is the ability to send and receive money via WU money transfers. The card also comes with the features you would expect, including online bill pay and online shopping.
- *Monthly fee plans as low as $0
- Send and Receive a Western Union® Money Transfer, shop online or pay bills.
- With Western Union Direct Deposit, you can get paid faster than a paper check.
- No late fees or interest charges because this is not a credit card.
- Subject to card activation and ID verification. Terms and Costs Apply. Issued by MetaBank®, Member FDIC.
- Get your tax refund direct deposited to your Card Account and no more waiting in line to cash your paper check!
- See additional Western Union Prepaid Mastercard® Details
FamZoo Prepaid Card
For families with children, the FamZoo Prepaid Card is ideal to have a teen’s tax refund deposited directly to their prepaid card. Note that FamZoo is one of the few prepaid cards designed for teens that allows direct deposit of a tax refund.
- Perfect for preschool through college
- No risk of debt, overdrafts or hidden fees
- Retain parental visibility and control
- Move money instantly between family members
- Try FamZoo for 1 month FREE
- As low as 63 cents per month per card
Alternatives to Prepaid Cards for Tax Refunds
Prepaid debit cards are not the only option for tax refunds. Of course, there are always checking accounts. For those not wanting a traditional bank, however, there are some alternatives worth considering. Here are two options:
Chime
With Chime, you can get your tax refund deposited to your account. You’ll need the routing number and account number, which can be found in the Chime app under Settings > Account Information.
- Get paid up to 2 days early with direct deposit
- Track your account balances and daily transactions with the Chime mobile app
- Get daily balance notifications and instant transaction alerts
- Send money instantly to friends
- Chime Visa® Debit Card
- 0.50% APY
- No monthly fees.
- No minimum balance requirements.
- 60,000+ fee-free MoneyPass® and Visa® Plus Alliance ATMs.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Aspiration
The Aspiration account combines an award-winning mobile app with an FDIC-insured bank. You can set up direct deposit of paychecks, social security, government benefit checks, and yes, IRS tax refunds. Aspiration also pays one of the highest yields available today from a savings account.
- Unlimited fee-free ATM withdrawals at Allpoint ATMs
- Up to 10% cash back on debit card purchases
- Deposits are fossil fuel-free
- Plant a tree with every roundup
- Up to 1.00% APY
- Earn a $100 bonus when you spend $1,000 (see details here).
Setting up Direct Deposit of a Tax Refund
Setting up direct deposit of a tax refund to a prepaid card takes just three simple steps. You can also use these steps to set up direct deposit to a checking account.
How to Get a Tax Refund Deposited to a Prepaid Card
Get your card’s routing number
The routing number is a 9-digit number that identifies the FDIC-insured bank that holds the money for the prepaid card. The routing number appears on bank checks, but it’s also available in your prepaid card account. If you are unable to find it, call the prepaid card issuer and they will provide it to you.
Tip: Many prepaid cards make the routing number available inside their mobile app.
Get your account number
The account number is specific to your prepaid debit card account. It will be available to you online or through the mobile app.
Tip: Keep in mind that your account number is NOT the 16-digit number on your card.
Add this information to your tax return
Once you have your routing and account number, you can enter into any tax preparation software or directly onto a paper tax return. For prepaid cards, you select “checking” as the account type.
How Long Will it Take to get Your Refund
The IRS reports that most refunds are issued within 21 days after the IRS receives your tax return. As such, filing your return electronically is the fastest way to get your refund. There are some things that may slow down the process. For example, the refund may take longer if you claim either the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
FAQs
Yes. All of the prepaid cards and alternatives listed above offer free direct deposit.
In terms of the refund itself, prepaid debit cards all work in similar ways. The best option will depend on how you want to use the card once you receive your refund.
Direct deposit of a tax refund to a prepaid card is faster than a paper check. It’s similar to transferring the refund to a bank account.
Final Thoughts
Whether you use a prepaid debit card or a checking account, direct deposit is the safest and fastest way to get your refund. If you prefer a bank, check out our list of the best online banks. They offer low fees and the highest interest rates on savings available today.
