Fifth Third Bank Brings Back Early Tax Refund Service for Customers

Fifth Third Bank is giving taxpayers a financial head start, offering its customers the ability to access their tax refunds up to five days earlier than standard IRS processing times at no extra cost.

This feature is available to customers with a Fifth Third Momentum Checking account, the Ohio-based bank said in a Monday (Jan 27) press release.

The bank says that according to the IRS, electronically filed Form 1040 returns are generally processed within 21 days. The new free early tax refund service potentially reduces this wait time to 16 days for eligible Momentum Banking customers, per the release. Early access to funds is dependent on submission of direct deposit by the payer and standard fraud prevention restrictions.

Fifth Third claims to be “one of the only U.S.-based banks” to offer this service and more than 2 million customers currently use this banking product, the press release said.

“Tax refunds are a meaningful source of money for many Americans,” Fifth Third SVP and Director of Product Management Ben Mendelsohn said in the release. “By automatically delivering tax refunds up to five days early, we help our customers accomplish their goals faster, like paying off debts or saving for a big purchase.”

The early refund feature follows Fifth Third’s previous initiatives in expedited payment services. The press release noted that in 2021, the bank introduced early paycheck access, allowing customers to receive their wages up to two days in advance. The following year, the service was expanded to include gig workers and recipients of government and retirement benefits and then in 2023 offered the early tax refund service.

PYMNTS reported last week that Fifth Third added features to its Momentum Banking products and mobile app last summer to make it easier for customers to switch their direct deposit, to avoid paying fees when they overdraft accounts, and to secure their identity and financial assets.

The report also said that because of gains from its investments in new branches in the Southeast and its digital banking platform, Fifth Third plans to add 200 branches over the next four years. Currently, the bank operates about 1,100 branches. The planned expansion would put 50% of its branches in the Midwest and 50% in the Southeast.