If you file your tax return electronically with the IRS and choose direct deposit as your tax refund method, you could have your tax refund within 21 days.
But there are ways to get your tax refund up to 5 days earlier1. You just need to know a bit about how tax refunds are processed and choose a direct deposit method that allows for faster access to your money.
Read on to get answers to common questions about tax refund timing, including:
- How fast are tax refunds at traditional banks?
- How do I get a tax refund early?
- How can I avoid tax refund delays?
- How do I track my tax refund?
But first, let’s start with a quick overview of direct deposits and how they work.
How direct deposits provide faster tax refunds
Direct deposits occur when you provide account information for your traditional bank, online bank, or prepaid debit card so that money can be transferred directly into your account. Direct deposits are often used by employers to deposit your paycheck into your account or on your card. But they can also be used by government agencies to transfer financial benefits and, yes, tax refunds.
Direct deposits save time on tax refunds because they don’t require the IRS to print and mail a physical check. This also saves you from having to receive and cash the check yourself.
The IRS refund deposit schedule typically allows up to 21 days to process a direct deposit from an e-filed return, and four weeks or more for returns sent by mail. There is nothing any bank or financial technology (fintech) company can do to speed up this timeline. However,banks and fintech companies can affect how quickly you can access your funds by either waiting until the funds “settle” in your account or by allowing you to access the funds before the transfer has officially finished processing.
It’s worth noting that the IRS allows taxpayers to split a refund into up to three accounts. For example, if you are married and filing jointly, you and your spouse might elect to have half the refund deposited into each individual’s account. This is also helpful for those who want to deposit a portion of the refund to a traditional bank account and a portion to a prepaid card for faster access to the funds.
Standard tax refund timing with traditional banks
Traditional banks (financial institutions with brick-and-mortar branches) generally post your refund to your account one to three business days after the IRS digitally sends the payment. The IRS recommends contacting your bank if the funds are not showing in your account within five days of the send date.
The reason for this delay is that banks are waiting for the fund transfer to be completed before making the money available for spending or withdrawal. The IRS uses an ACH (automated clearing house) transfer to make direct deposits to your account, and the full process takes one to three days for the funds to settle in your account and become available to you.
Traditional banks with a one-to-three-business-day tax refund processing time include:
- Bank of America
- JPMorgan Chase
- Wells Fargo
- Citibank
- US Bank
- Regional and local banks with physical bank branches
- Credit unions with physical branches
Neobanks and prepaid cards for early tax refunds
Neobanks are fintech companies that provide financial services through partnerships with traditional banks or online banks. These banking alternatives provide user-friendly interfaces (typically via mobile apps) and everyday features like direct deposits and debit cards, but the money is technically stored by their partner banks. This combines the convenience of modern money management with the protection of FDIC-insured bank accounts.
Prepaid debit cards are payment cards that you load with money in advance and use to make everyday purchases, shop online, or pay bills, without needing a bank account or credit card. This is ideal for unbanked and underbanked Americans, but it’s also useful for anyone who wants to keep their bank account separate for security and/or budgeting purposes.
Some neobanks and prepaid cards offer early tax refund access compared to traditional banks. They do this by allowing you to access your funds before they have settled in your account. When these alternative banking providers see the ACH instructions from the IRS, showing that the transfer has been initiated, they can grant you early access to these funds. By making your money available before the transfer is complete, these providers can shave four to six days off your wait.
Here are a few examples of some of the best neobanks and prepaid cards for tax refunds:
Netspend
Netspend is a prepaid debit card provider with direct deposit features that can deliver your IRS refund up to five days early1. Netspend also offers useful features like budgeting tools, pay-as-you-go plans2, and a mobile app, making it a flexible option for people who want to replace or supplement traditional bank accounts.
Green Dot
Green Dot is one of the oldest and most widely used prepaid card providers in the U.S. It offers early direct deposit of paychecks and government payments, including IRS tax refunds, up to five days before the official payment date.
Walmart MoneyCard
Issued by Green Dot Bank, the Walmart MoneyCard is a reloadable prepaid debit card that advertises tax refunds available up to five days early. It can be used for everyday purchases and offers perks like cash-back rewards at Walmart stores.
Serve
Serve cards offer different account types, some of which advertise five to six days early access to tax refunds. These reloadable prepaid cards come with no credit checks, and some include features like free bill pay and subaccounts for family budgeting.
Chime
Chime is a neobank that offers early direct deposit of tax refunds and paychecks, with many users reporting refunds up to six days early. It’s a popular option among tech-savvy users for its no-fee structure, modern mobile app, and automatic savings features.
Varo
Varo started as a neobank but now holds a national banking charter, making it a true online bank. It offers early access to tax refunds and other direct deposits up to five days in advance, along with high-yield savings options and no monthly fees.
Current
Current is a neobank that provides early access to IRS refunds up to five days early, as well as fast access to paychecks and government benefits. It also offers unique features like teen accounts, instant spending notifications, and points-based rewards.
Additional factors that affect tax refund timing (and how to avoid delays)
While the main factor that affects tax refund timing is the IRS release date of your refund, there are other factors that can influence the timing, including:
- Method of filing. E-filing can cut a week or more off the refund processing time compared to mailing in a paper tax return.
- Timing of filing. Filing early in the season will typically result in a faster refund, while filing later will result in a later refund. Filing later can also have increased wait times because of the increased volume of tax returns being processed right before the deadline.
- Method of receiving the refund. Paper checks take longer to process than direct deposits.
- Amendments to your return. If your tax return needs to be amended, it can take up to three weeks for the amendment to show up in the IRS’s system, and up to 16 weeks to process, delaying the eventual refund.
- Weekends and holidays. Since the IRS and traditional banks don’t process transfers outside of work hours, weekends and holidays can delay payment. However, if a direct deposit is initiated to a neobank or prepaid card with early refund access before the weekend or holiday, you could still access your funds during that period.
- Incorrect banking info. If the account number or prepaid card number used is not correct, there will be a delay in receiving your refund. The IRS may even issue a paper check if it cannot confirm the correct direct deposit information.
- Attempting a direct deposit to an account in someone else’s name. The IRS can only issue a direct deposit to an account in which the account holder and the taxpayer are the same person.
How to track your tax refund
The IRS website allows you to track your refund online. Your refund status will typically appear:
- 24 hours after you e-file a current-year return
- Three to four days after you e-file a prior-year return
- Four weeks after you file a paper return
Updates are done daily, usually posting by 5 a.m. Eastern.
How to get your tax refund faster with early direct deposit
If you're hoping to get your IRS tax refund as quickly as possible, filing your return electronically and choosing direct deposit is a smart first step. Most taxpayers who e-file and select direct deposit receive their refund within 21 days. But you can potentially get access to your money up to five or six days early by choosing a neobank or prepaid card that offers early deposit features.
While no financial institution can speed up the IRS’s refund processing time, whereyou choose to receive your refund can affect how soon it’s available for use. Traditional banks typically wait for the refund to fully settle, but many neobanks and prepaid card providers credit the funds as soon as they receive notice from the IRS. Understanding these differences and avoiding common delays can help you receive your refund quickly and conveniently.
