The IRS is Moving Away from Paper Checks: Is Your Money Ready?

If you’ve been used to waiting by the mailbox for your tax refund or government payments, there is a big change on the horizon. The IRS is increasingly moving toward "all-digital" payments. This means that receiving a paper check is becoming slower, more difficult, and in some cases, not an option at all.

To get your money safely and quickly, having a checking account is no longer just a convenience; it’s a necessity. But if you’ve never had a checking account, or if you’ve had "banking hurdles" in the past, choosing the right spot for your money can feel overwhelming.

Here is a simple guide to finding the right fit for your lifestyle.

Why the Shift?

The move to direct deposit is all about security and speed. Paper checks can be lost, stolen, or delayed by the mail. With a checking account, your refund often arrives weeks faster than a paper check, and you don't have to pay high fees at a check-cashing store just to get your own money.

Understanding Your Options

Not all checking accounts are built the same. Depending on your history and your needs, you might look at:

• Basic Checking: Ideal if you want a simple place for your paycheck to land without worrying about monthly maintenance fees.

• Second Chance Checking: If you’ve had issues with a bank in the past (like unpaid overdrafts), some institutions offer "fresh start" accounts. These help you rebuild your financial reputation while giving you all the tools of a modern account.

• High-Yield or Reward Checking: These accounts actually pay you back in cash back or dividends for certain actions, such as using your debit card or logging into online banking.

What to Look for When Choosing a Checking Account

When you’re "shopping" for a home for your money, ask these three questions:

1. Are there monthly fees? Look for accounts that offer "no monthly service charge" or easy ways to waive the fee (like having a direct deposit).

2. How is the ATM network? You shouldn't have to pay to get your own cash. Make sure the bank or credit union has plenty of fee-free ATMs.

3. Is there a mobile app? In a digital world, being able to check your balance or deposit a check from your phone is a game-changer.

Finding a Local Partner

If you are looking for a place that understands the local community, OnPath Credit Union offers a range of options designed to meet people where they are.

Whether you need a cash back checking account or need a second chance with our Rise checking account we keep things easy with a focus on education and accessibility. Because credit unions are member-owned, the goal isn't just to "open an account"—it’s to help you build a solid financial foundation so you’re ready when that next IRS deposit hits.

The Bottom Line

Don't let your tax refund get stuck in the "paper trail." Setting up a checking account now means you’ll be at the front of the line when it’s time to get paid.

Ready to make the switch? Stop by a branch today to talk about which account fits your story.

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