how much do tax services charge for rapid refunds?

Question

Should be getting back $2500,do they charge a percentage or a flat rate for a same day or next day refund check,thanks.

Answer 1

Rapid Refunds is the brand name for H R Blockhead's Refund Anticipation Loan (RAL). A RAL is a total rip off! The fees are usually a percentage of around 5% PLUS a handling fee of $15 to $30. Remember this is a loan and you are borrowing money for about 10 days. If you figure out how much you would have paid for a whole year it comes out around 300% interest!!!

A better way to get your refund fast is with an on-line program. When you electronically file, request that your refund be directly deposited into your bank account by the IRS. There are no fees and you will have your money in less than 2 weeks. That's only 4 days longer than a refund loan.

I like this on-line program because it donates part of your fee to charity. It has real good customer service too. Just don't choose the RAL!

http://www.internet-taxprep.com/wichitasouth
or
http://www.internet-taxprep.com/hopeworldwide

Answer 2

Rapid refund charges finance charges depending on the amount of your refund. H & R Block will only charge you your tax return preparation and THE BANK will charge you the finance charge plus an account fee of 29.95 to wire the funds for you tax prep.
When you get rapid refund the same day the fee increases by about $40 and for a $2500 refund the bank should charge you $122.45 for the same day and $91.93 for the next day

Answer 3

Skip the RR loan! If you have your taxes sent directly to your bank account it will only be a very few more days to get your refund -- often less than a week. The fees they charge for the RR loans work out to 300% APR or more. Ask them for the APR for the RR loan. They MUST tell you that in writing! It's a RIP OFF!

Hmmm... Just ran the numbers that the Block guy posted. Assuming that you get your money 1 week faster with the RR loan (a reasonable assumption) your APR works out to a whopping 2,553% APR. I know loan sharks that don't charge that much! Unless they're going to foreclose on your home tomorrow, skip the RR loan!!!

Answer 4

DON'T DO IT.

They charge like $40. If you e-file, and list your checking account on the form so the IRS can do a direct deposit, you'll get the money in a week or two at worst.

Charging you $40 for a two-week loan, that's like charging $960 per year for that $2500. 38.4% interest. That's completely unreasonable when you can get it back so quickly from the IRS.

Biggest scam in the country.

Warren Buffett is the 2nd richest guy on the planet. Guess what one of the companies he owns is? H&R Block!!!!!!!

You see the picture forming, I hope?

I stand corrected... Apparently it's actually over 100% interest!!!!!

$122 per two weeks, times 24 equals $2928. 117% annual APR.

Need I say more?