Go see AL Capone, instead
Rapid Refund? Remember that name? It was so misleading, the IRS & New York made Tax companies correct it’s meaning because it was misleading advertising.
So now, we have ” Rapid Advance”. No, it’s not your Tax refund- it’s a 0% loan given to you on a Bank related Mastercard ATM card.
Well, that, you might say, sounds very convenient!. It sure is! The Tax companies want you to use this new card- to spend your money- and they will charge you every dollar for it.
So, finished your TAXES! Got your card and your Loan money? you want it NOW and not in 10 days: Bang: 3% Processing fee.
Let’s go to the ATM to inquire and withdraw:
Bang: ATM inquiry fee $1.50. Withdrawal $3.00
Hey, now it’s time to pay your bills with this card. You can pay your cable, telephone, etc. Bang: ,$3.00 per payment.
Now, that the current bills are paid, it’s time to go shopping: clothes, electronics, entertainment: Bang: $35 per withdrawal
So, wait, you want to refill the card for future use because you need an extra MasterCard related debit card: Bang: $4.95
Too much money?. you don’t want to use the card?. Bang: $4.95 non user fee
And believe it or not I can go on. Even worse, as BIG Tax companies, like HR Block for example, open this program to mostly everyone, they really sell it hard in low income areas- where they need the money in the first place.
So, a month after one does their taxes, inquires and withdrawls on their money ( twice a week) , decides to pay their household bills ( once) , goes out for entertainment (three times a month)
Processing fee. $45
ATM Inquires and withdrawals: $36
Household bills ( 3 items) $ 9
On a $1500 ” loan”, that is 13% of your money you are losing. Do it for two months, that 26%
So far so good? That’s not too bad?
Instead of busting your brain on this decision, just ask one question to yourself: Can I wait 10 business days for my money? If you can, open a separate bank account, have your refund wired their and have fun with ALL your spending ( and hopefully saving) patterns.
By: Anthony Rivieccio, MBA, PFA