As we kick off another tax season, now is a perfect time to think strategically about how you receive and use your tax refund. The Federal Deposit Insurance Corporation (FDIC) recently published its “New Year, New Tax Season” guidance highlighting practical steps taxpayers can take to receive refunds quickly and securely — and avoid common pitfalls.
Get Your Refund Fast — and Safely
According to the FDIC, choosing direct deposit into a bank account is the fastest and most secure way to receive your federal tax refund. Electronic deposit typically arrives within 10–21 days after your return is accepted when you file electronically and select direct deposit. That’s often much quicker than waiting for a mailed check — and, importantly, much safer from theft or loss.
At Merchants and Marine Bank, your deposits are insured up to at least $250,000 by the FDIC when held in an FDIC-insured account, giving you peace of mind while you put your refund to work.
Need Help Filing? Know Your Options
The FDIC reminds taxpayers that free tax preparation assistance may be available through the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs — helping eligible individuals file for credits and deductions that can increase their refund.
If you choose a paid tax preparer, make sure they’re reputable: ask for their Preparer Tax Identification Number (PTIN), references, and clear fee information. Anyone promising unusually large refunds or contacting you unsolicited could be a red flag.
Protect Your Refund — Avoid Scams
Scammers often impersonate IRS agents to steal your personal information. The FDIC highlights that the IRS will never contact you first by phone, email, text, or social media to ask for personal or financial data.
Be cautious of requests for urgent payment via prepaid cards, gift cards, or wire transfers — these are common tactics used in scams. If you suspect fraud, contact the IRS directly or report it to the Treasury Inspector General for Tax Administration.
Make Smart Use of Your Refund
Once you receive your refund, think about using it to build financial strength:
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Grow your savings: Consider adding to an emergency fund or opening a new savings account at Merchants and Marine Bank to help you weather unexpected expenses.
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Pay down high-interest debt: Reducing credit card balances or other costly loans can improve your financial flexibility.
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Plan for the future: Use part of your refund to invest in longer-term goals like a home, education, or retirement.
These steps reflect the FDIC’s guidance to not only protect your refund, but to use it in a way that strengthens your long-term financial well-being.
Want to learn more? Read the full FDIC article here: New Year, New Tax Season on FDIC.gov.
