Did you know that TurboTax and Credit Karma are part of the same company, Intuit? This is an exciting benefit for our customers because we have some tips and tricks on how to help make filing your taxes a little less daunting and to help you improve your financial situation overall. It’s time to file your taxes and if you’re looking for access to earlier cash, funds to pay down debt or help build your credit, or simply to earn interest on your tax refund by depositing it into a high-yield savings account to plan for a rainy day, keep reading – we’ve outlined some of the best ways to help make these happen.
One of the best ways of using TurboTax and Credit Karma together is the option to direct deposit your tax refund into a Credit Karma MoneyTM checking1 or savings2 account. Credit Karma Money is offered as a direct deposit option when you decide on where to put your tax refund while filing. These accounts offer a range of year-round benefits for you to take advantage of.
Free to open with no minimum balance requirements3
Credit Karma Money Spend is a free to open checking account, with no monthly fees or minimum balance requirements. This type of flexibility with your money can be a significant advantage, as some banks may charge fees for maintaining an account or require you to maintain a minimum balance each month to avoid fees.
Access to earlier cash and cashback
Typically, it can take weeks to receive your tax refund after filing your taxes with the IRS. However, if you deposit your tax refund in a Credit Karma Money account, you could receive it up to 5 days early4 so you can get to spending earlier on whatever you might need. 5-Day early program may change or discontinue at any time.
When you continue to use Credit Karma Money after tax season, you can set up direct deposits and get access to your paycheck up to 2 days early5. This perk can come in handy, especially if you are in urgent need of funds for essential expenses like rent, utilities, or medical bills. Then, get more from your everyday spending by earning automatic cash back at thousands of merchants with your debit card!6
You could improve your credit score
Building a strong credit score is essential for improving your financial health, as it is one of many factors that could help you qualify for better loan terms, credit card offers, and other financial products.
Credit Karma Money Spend members can apply for Credit Builder,7 a tool that could help improve your credit score. Putting aside just $20 per month into the Credit Builder plan could set you on a course towards better credit8 – You could even add 21 points to your score on average within 2 months!9
You’re eligible to apply for Credit Builder if your TransUnion credit score is 619 or below at the time of application.
Credit Karma also offers other financial services such as credit monitoring, credit score tracking, and personalized recommendations for your future credit card or loan needs.
Reach your savings goals faster with your tax refund
For those interested in reaching their savings goals sooner, Credit Karma Money Save offers a high yield interest rate. You could earn interest on your tax refund when you deposit it in a Credit Karma Money Save account and let it grow. The funds in your account are FDIC insured up-to $5 million10, so you can take comfort in knowing Credit Karma has your back. It’s time to build that emergency fund that you’ve been thinking about this whole time.
You see, these are just some of the ways that using TurboTax and Credit Karma together can help you take your tax refund further and improve your personal finances. The sooner you file, the sooner you can enjoy the benefits of earlier funds, building low credit, or growing your savings for a rainy day. Let’s take the next step of building the foundation for your financial future by getting started together – start by filing your taxes with TurboTax today and look for Credit Karma Money as a deposit method for your tax refund.
Details & Disclosures:
¹ Banking services for Credit Karma Money accounts are provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply per account. Credit Builder is not provided by MVB Bank.
2 A maximum of 6 withdrawals per monthly savings statement cycle may apply.
3 Third party fees may apply. Please see Credit Karma Money Spend Account Terms & Disclosures for more information
4 If you choose to pay your tax preparation fee with TurboTax using your federal tax refund or if you choose to take the Refund Advance loan, you will not be eligible to receive your refund up to 5 days early. 5-day early program may change or discontinue at any time. Up to 5 days early access to your federal tax refund is compared to standard tax refund electronic deposit and is dependent on and subject to IRS submitting refund information to the bank before release date. IRS may not submit refund information early.
5 Early access to paycheck is compared to standard payroll electronic deposit and is dependent on and subject to payor submitting payroll information to the bank before release date. Payor may or may not submit a paycheck early.
6 Restrictions may apply. Purchases made with your Credit Karma Visa® debit card only. Check your Spend account for cash back feature. Cash back amounts vary based on participating merchants and are subject to change. Cash back rewards may take up to 45 days to be deposited into your account. Cash back rewards program powered by Dosh.
7 Credit Builder plan requires you to open a no-fee line of credit and a no-fee savings account, both provided by Cross River Bank, Member FDIC. Credit Builder is serviced by Credit Karma Credit Builder. You’re eligible to apply for Credit Builder if your TransUnion credit score is 619 or below at the time of application.
8 With Credit Builder, you may be able to elect to enroll in the optional AutoSave Program, which allows you to automatically save as little as $10 per paycheck if you contribute biweekly or semimonthly and as little as $20 per paycheck if you contribute monthly. If you do not elect to enroll in AutoSave, any contribution you make to Credit Builder may not be less than $10. For more information, please see our FAQs at https://support.creditkarma.com/s/article/Credit-Builder-FAQ.
9 From January to June of 2022, members with a TransUnion credit score of 619 or below who opened a Credit Builder plan and had it reported on their TransUnion report saw an average credit score increase of 21 points within 2 months of opening the plan. Late payments and other factors can have a negative impact on your score, including activity with your other credit accounts.10 The balance in your checking and/or savings account may be moved to one or more network banks, as listed at https://banks.stonecastle.com/list, where it is eligible for FDIC insurance up to $5,000,000 once the funds arrive at a network bank. Actual insured amounts may be lower or adversely affected based on any balances you hold at a network bank. Learn more at: https://www.fdic.gov/deposit/deposits.