Way2Save is a savings account designed by the IRS to help people build emergency funds with tax refunds

Way2Save is a savings product offered through the IRS Free File program. When you file your federal tax return through a participating tax software provider, you can split your refund between a checking account and a Way2Save savings account instead of depositing the entire amount into one account. The account is held at a partner bank, and the IRS does not manage the account itself — the bank does.

The main purpose is to make it easier to set aside part of your refund without having to open a separate account on your own. You direct a portion of your refund to the savings account during the tax filing process, and the rest goes to checking if you choose. The account opens automatically when your refund is deposited.

Way2Save accounts are not the same as a regular savings account you would open at a bank. They are specifically tied to the tax refund split feature and are offered only through IRS Free File partners. If you file your taxes through a paid tax software or a tax professional, you will not have access to Way2Save — you would need to use your bank's own savings account instead.

Key Takeaways

  • Way2Save lets you split your tax refund between checking and savings during the filing process, with no separate account opening required.
  • The account is held at a partner bank, not by the IRS, and the bank sets the interest rate and account rules.
  • Way2Save is only available through IRS Free File tax software — paid tax services and tax professionals do not offer it.
  • You can direct any portion of your refund to Way2Save, from a small amount to your entire refund if you choose.

How to set up a Way2Save account when filing your taxes

When you file your federal tax return through an IRS Free File partner, you will reach a step that asks where you want your refund deposited. At that point, you can choose to split your refund. The software will ask you how much to send to checking and how much to send to savings.

You enter the dollar amount or percentage for each account. For example, you could direct $500 to checking and $1,500 to savings, or split it 50-50. The software then opens the Way2Save account at the partner bank and deposits your refund according to your instructions once the IRS processes your return.

You do not need to have a bank account already open to use Way2Save. The account is created as part of the refund deposit process. However, you will need to provide your Social Security number and basic personal information so the bank can verify your identity and comply with federal banking rules.

Which banks offer Way2Save and what the accounts include

The banks that offer Way2Save change from year to year, and not all IRS Free File partners offer the feature. Common partner banks have included MetaBank, Pathward, and others, but you should check the current list on the IRS Free File website or with the tax software you are using to see which banks are available for the current tax year.

Each bank sets its own interest rate, fees, and account features. Some Way2Save accounts earn interest, while others do not — this varies by bank and can change. Some accounts have monthly maintenance fees, while others are free. You should review the account terms before you direct your refund to Way2Save, because once the refund is deposited, you are locked into that bank's account.

Most Way2Save accounts come with a debit card so you can withdraw money, and you can usually transfer funds online or by phone. However, the exact features depend on which bank holds your account. If you are unhappy with the account after your refund is deposited, you can transfer the money to your own bank account, though this may take several business days.

Interest rates and fees on Way2Save accounts

Interest rates on Way2Save accounts vary by bank and are typically lower than what you would earn in a high-yield savings account at an online bank. Some accounts earn no interest at all. The rate can also change at any time, so an account that earns 0.5% one month might earn 0.01% the next.

Fees also vary. Some Way2Save accounts charge a monthly maintenance fee of $2 to $5, while others are free. Some charge fees for overdrafts, transfers, or other services. A few accounts waive fees if you maintain a minimum balance, though the minimum is often higher than the average refund amount.

Before you split your refund into Way2Save, compare the interest rate and fees to what your own bank offers. If your bank has a savings account with no fees and a similar or better interest rate, you may be better off depositing your entire refund into checking and then moving money to your own savings account yourself.

How long it takes for your refund to reach Way2Save

Once you file your return through an IRS Free File partner and choose to split your refund, the IRS processes your return according to the normal timeline. Most returns are processed within 21 days, though some take longer if they require verification or contain errors.

When the IRS approves your return, it sends the refund amount to the partner bank. The bank then deposits your portion into the Way2Save account. In most cases, the money appears in your Way2Save account within one to three business days after the IRS releases the refund, though this can vary by bank.

You can track the status of your refund using the IRS Where's My Refund tool on the IRS website. This tool shows you when the IRS has processed your return and when it has sent the money to the bank. Once the money reaches the bank, the tool will show a status of "Delivered," but the bank may take an additional day or two to post it to your account.

Withdrawing money from Way2Save and moving it to another account

You can withdraw money from Way2Save at any time using the debit card that comes with the account, or by transferring funds online. There are no restrictions on how much you can withdraw or how often. However, federal banking rules limit the number of transfers you can make from a savings account to another account to six per month — if you exceed this, the bank may charge a fee or convert your account to checking.

If you want to move your entire Way2Save balance to your own bank account, you can request a transfer through the partner bank's website or by calling customer service. The transfer usually takes three to five business days. Some banks allow you to set up automatic transfers, so money moves from Way2Save to your checking account on a schedule you choose.

Keep in mind that if you close your Way2Save account, the bank may charge a fee. Check the account terms before you open it to see whether there is a fee for closing the account early.

Alternatives if Way2Save is not available or not right for you

If the banks offering Way2Save do not appeal to you, or if you are not filing through an IRS Free File partner, you have other options. You can open a savings account at your own bank and deposit your entire refund into checking, then transfer the amount you want to save to your bank's savings account yourself. This gives you more control over which bank holds your money and what interest rate you earn.

You can also split your refund between multiple accounts if your bank allows it. Some banks let you direct a refund to two or more accounts at the same time using routing and account numbers. This is not the same as Way2Save, but it accomplishes the same goal — putting part of your refund into savings without having to make a transfer after the money arrives.

If you are filing taxes through a paid tax software or a tax professional, ask whether they offer refund splitting. Some do, though they may not call it Way2Save. The process is similar: you choose how much to send to each account during the filing process.

Frequently Asked Questions

Can I open a Way2Save account if I do not have a bank account already?

Yes. Way2Save creates a new account for you when your refund is deposited. You do not need an existing bank account. However, you will need to provide your Social Security number and personal information so the bank can verify your identity.

What happens if I change my mind about splitting my refund after I file?

Once you file your return and the IRS begins processing it, you cannot change how your refund is split. If you want to change the split, you must file an amended return, which takes longer and is more complicated. It is better to decide on the split before you file.

Does Way2Save count as a bank account for government benefits?

Yes. Way2Save is a real bank account, and the money in it counts toward asset limits for means-tested benefits like Supplemental Security Income or SNAP. If you receive these benefits, check with your benefits office before splitting a large refund into Way2Save, as it may affect your benefits.

Can I earn interest on Way2Save?

Some Way2Save accounts earn interest, but the rate varies by bank and is typically low — often less than 0.5%. Check the account terms for the specific bank before you split your refund. You may earn more interest at an online savings account or money market account at your own bank.

What if the bank holding my Way2Save account goes out of business?

Your money is protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account. If the bank fails, the FDIC will transfer your account to another bank or send you a check for your balance. Your money is safe even if the bank closes.