Looking for a viable alternative to “refund anticipation loans” from tax preparers like H&R Block and Jackson Hewlitt? The U.S. Department of the Treasury plans to test a new prepaid debit solution called MyAccountCard for the 2010 tax season. The cards will be available to a select group of about 600,000 taxpayers. And, according to a release, the pilot will be a convenient and low-cost financial account for the electronic delivery of their federal tax refunds.
“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” says Deputy Secretary of the Treasury Neal Wolin. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”
The caveat? There will be a monthly fee for having the card, ranging from free to $4.95. As previously reported, the additional costs can nickel and dime consumers with larger-than-usual ATM withdrawal and customer service fees as well as penalties for exceeding the prepaid balance.
Click here for the lowdown.
