Credit Karma Tax, the only major free tax preparation provider that never charges any of its users to file, now integrates directly with Credit Karma Savings, allowing filers to automatically deposit their refunds or a portion of it into a free, high-yield savings account1 with 18 times the national average APY.2 Nearly one-third of Americans expecting a refund and plan to put their refunds toward building savings.3 This technology makes that a reality, giving members a seamless way to allocate money from their refunds into a Credit Karma Savings account without leaving the platform.
This integration bridges two product offerings and gives members a destination to manage and grow their money. Credit Karma Tax is the only platform that allows its members to deposit their refund or a portion of their refund into a Credit Karma Savings account and begin earning interest. This integration removes the barriers for members who don’t already have a high-yield savings account, making account opening as easy as a few clicks.
“We know, once people get their refund they tend to spend it rather than save. Our goal is to help members follow through with their intention of saving by making the process as seamless as possible,” said Jagjit Chawla, vice president and general manager of Tax and Savings at Credit Karma Tax and Credit Karma, respectively. “Having a high-yield savings account connected to our tax offering is yet another differentiator for our product.”
How It Works
As a final step of the Credit Karma Tax filing process, members who receive a refund are given the option to allocate money from their refund to their existing Credit Karma Savings account or open a new Credit Karma Savings account in just a few simple clicks. Credit Karma Savings accounts opened during the filing process will have a refund allocation limit of $500. While, the refund allocation limit for existing Credit Karma Savings account holders will be $10,000. Alternatively, members can choose to split their refund into an existing checking or savings account, by check or with an American Express Serve prepaid debit account.
Once a member has a Credit Karma Savings account, they can take advantage of Credit Karma savings tools like the simulator to get insight into how their money could grow over time.
The tax-savings integration is Credit Karma’s latest move toward automating finances. Members who file their taxes with Credit Karma Tax can expect a completely free tax filing experience. This includes mobile filing, 24/7 chat support, free Audit Defense, and a product backed by a Maximum Refund Guarantee and Accurate Calculations Guarantee.
Credit Karma Savings, which launched in October 2019, is designed to simplify savings, while offering a high-yield savings rate 18 times the national average and FDIC Insurance of up to $5 million.4 Credit Karma Savings has no fees and does not have a minimum to open. The Credit Karma platform facilitates the opening and managing of Credit Karma Savings accounts offered through our bank partner MVB Bank, Inc., Member FDIC.
About Credit Karma Tax
Credit Karma Tax launched in 2017 and offers free tax filing for federal and state returns to Credit Karma’s more than 90 million members in the U.S.
About Credit Karma
Founded in 2007 by Ken Lin, Credit Karma is a consumer technology company with more than 100 million members in the United States, U.K. and Canada, including almost half of all U.S. millennials. While best known for pioneering free credit scores, the company’s members turn to Credit Karma for everything related to their financial goals, including identity monitoring, applying for credit cards, shopping for loans (car, home and personal) and now high-yield savings accounts through our bank partner, MVB Bank, Inc., Member FDIC — all for free. Learn more about how Credit Karma members are making financial progress on Facebook, Twitter, and YouTube.
About MVB Bank, Inc.
Headquartered in Fairmont, West Virginia, MVB Bank, Inc., and the bank’s subsidiaries, MVB Mortgage, the MVB Community Development Corporation and Chartwell Compliance, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.”
1 Banking services provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply. Maximum 6 withdrawals per monthly statement cycle.
2 Source: FDIC’s national average savings rate as of 02/01/2020.
3Source: Credit Karma/Qualtrics nationally representative online survey on tax refunds among 1,032 American adults who received a tax refund in 2019 for their 2018 taxes and are planning to file their federal and/or state taxes for the 2019 tax year.
4 The balance in your savings account may be moved to one or more network banks 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.