$100 is 2% of $5000! I am all for saving money but most money market accounts require a substantial initial amount. Also you will not have $5000 to start with so your end result will not be $100 in interest earned! And after income taxes are paid on that less than $100 earned in interest you really have very little. The real issue here is that people want to be able to "save" for their vacation and an account at a bank or credit union gives them too much access to their money so they use the IRS. People realise they do not have the willpower not to touch savings and they can not get at their refund money. Again, to each his own and I think people are very bright to know they could spend some of their vacation savings. A lump sum refund check to pay for Disneyworld is worth much more than the possibilty of an additional $50 dollars in interest IF (and for some people that it is huge if) the money remains in the account. Life has a way of sneaking up on us and for some people it is better to have a "bird in the hand."