Splitting a Refund Among Accounts
Direct deposit is the fastest way to recieve your tax refund. In an effort to encourage savings, the IRS established a program for refund splitting. IRS Form 8888 splits your refund into as many as 3 direct deposits. You could have part go directly to your checking account and part to a savings account.
To take advantage of this program, simply attach the filled out form to your tax return. You can pick up to 3 U.S. financial institutions for the direct deposit of your tax refund by simply filling out the routing number and account number(s). (These are on your check or account statement and the form tells you how to identify the numbers.) Funds can also be deposited in other types of financial accounts, such as Individuals Retirement Accounts (IRA) or Health Savings Accounts (HSA). Now you can decide how you want to divide your refund. Putting some of your refund directly into savings can makes it easier to save.
Form 8888 can also be used to purchase U.S. Savings Bonds. Bonds can be bought witgh any portion of your refund in increments of $50. The IRS will purchase the bonds for you and mail them to your address.