split refund

What is a Split Refund?

If you’re expecting a tax refund this year, don’t overlook the benefits of requesting a split refund.

The IRS offers this option for taxpayers who want to have their tax refund deposited into up to three different accounts.

There are a number of reasons why you might want to do this, and making this request doesn’t incur any type of fee. Here’s a quick overview of how a split refund works, and how it might even help you save some money in the long-term.

How a Split Refund Works

Instead of requesting a direct deposit into a savings or checking account, the split refund option allows you to get a direct deposit into two or three checking or savings accounts.

All you have to do is make your request on your tax return and make sure you include the account numbers of all accounts you want the deposit split into.

Your tax refund will be divided evenly among these two or three accounts and will be posted at the same time.

Of course, you always have the option to just get a refund check by mail and then make the deposits individually yourself.

However, this can be time-consuming because you’ll need to go to each bank or fill out separate deposit slips for each amount. You could also make a single deposit and then transfer money into different accounts, but depending on where you bank, you could end up paying a small amount in transfer fees.

How a Split Refund Can Save You Money and Time

So how would a split refund save you money?

While the deposit itself won’t save you money, the process of dividing up your deposit into separate savings or checking accounts could prevent you from blowing that refund check as soon as you receive it.

Sending the check to different accounts that are set up for different purposes – a travel fund, medical expenses, or even an emergency savings account – could prevent you from spending that money right away and put it toward something that is more valuable to you.

If you tend to struggle with saving money and want to get the most out of your tax refund this year, make sure you deposit that check into one or more of your most important savings accounts.

A split refund can simply make you more aware of the extra funds coming your way and give you a chance to allocate those funds before you spend it away.

Remember you can always transfer some of the deposit to a checking account if you have some planned-for purchases to make.


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