Brief Prepaid Cards at Tax Time Could Help Those without Bank Accounts
Caroline Ratcliffe, William J. Congdon, Signe-Mary McKernan
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Offering prepaid cards as an option on federal tax forms could help connect unbanked adults to the financial mainstream. The Treasury Department tested card features through a pilot that offered low-income adults prepaid cards for electronic delivery of tax refunds and everyday financial transactions. Key findings through the second year of the evaluation include: unbanked adults were 2.5 times more likely to directly deposit a tax refund into the card; repeat use of the card for tax refund deposits was substantial; a quarter of people who directly deposited a tax refund in 2011 did so again in 2012; and card cost matters for card take-up and use.
Research Areas Wealth and financial well-being Taxes and budgets
Tags Asset and debts Individual taxes
Policy Centers Center on Labor, Human Services, and Population