Rapid Refund. Remember that name? It was so misleading, the IRS and New York made tax filing firms correct it’s meaning because it was misleading advertising.

So now, we have “Rapid Advance.” No, it’s not your tax refund, but a 0 percent loan given to you on a pre-paid debit card.

Well, you might say, that sounds very convenient. It sure is! The tax filing companies want you to use this new card–to spend your money–and they will charge you every dollar for it.

So, you’ve finished your taxes! Got your debit card and your loan? You want it now and not in ten days? Bang: three percent. Processing fee.

Let’s go to the ATM to inquire and withdraw:

ATM inquiry fee: $1.50. Withdrawal fee: $3.00.

Hey, now it’s time to pay your bills with this card. You can pay your cable, telephone, etc. Bang: $3.00 processing fee per payment.

Now, that the current bills are paid, it’s time to go shopping: clothes, electronics, entertainment: $35 per withdrawal

So, wait, you want to refill the card for future use because you need an extra debit card: that’ll be $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 H&R 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 withdraws 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
Entertainment:                            $105
Total                                            $195

On a $1500 ” loan”, that is 13 percent of your money you are losing.  Do it for two months, that 26 percent.

So far so good? That’s not too bad?

Thinking twice?

Instead of busting your brain on this decision, just ask yourself a a question: Can I wait ten 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.