In this article about Social Security Direct Deposit I cover the five most asked questions.
1. Do you have to receive your payments by direct deposit?
2. When will my benefits be deposited?
3. Why not just receive a check in the mail?
4. How can I sign up for direct deposit?
5. What can I do if I don't have a bank account and don't want one for direct deposit of my payment?
1. Do you have to receive your payments by direct deposit?
The short answer is NO! The Social Security Administration strongly suggests everyone get their monthly payments this way. The three main reasons given for using this service are safety, convenience and speed. There is also a financial benefit to the government. It costs almost one dollar each month to send a paper check but only a few cents to send the payment electronically. At last count in January 2007, 80 percent of all Social Security and SSI beneficiaries had their payments delivered directly to their bank account. You are still able to get your payment by check, but you ought to think about the numerous benefits direct deposit provides.
2. When will my benefits be deposited?
The payments of benefits have long been fixed and are determined by the day of the month of your birth. Payments for all those receiving Social Security before May 1977 are made on the third of each month regardless of when you were born. After May 1977, the payment dates were changed and from that point on are detemined as follows. For everyone receiving benefits after April 1997 this is the schedule. If you were born on or between the 1st and 10th your payment is sent on the second Wednesday of the month. Payments for those born on or between the 11th and 20th are sent on the third Wednesday. Payments for those born on or between the 20th and 31st days of the month are sent on the fourth Wednesday.
3. Why not just receive a check in the mail?
There are some good reason to receive your payment by direct deposit. Don't you just hate waiting in a line? I know that I do and long lines make my feet hurt.
Celebrate! No more standing in line to cash your check when it finally arrives in the mail. Your money goes immediately into your account. You do not have to get out of your house in bad weather or be concerned if you're on holiday or away from home. You do not have to bear any more check cashing fees. Your money is in your account ready to use the day you receive your deposit.
4. How can I sign up for direct deposit?
It's actually fairly easy to get signed up if you already have a bank account. Just go to your bank, savings and loan or credit union. They can answer your questions about direct deposit.
If you do not have an account, look into opening one and sign up for direct deposit. Nearly all banks, savings and loans and credit unions provide an assortment of accounts, some with little or no fees. Look for one that meets your needs.
5. What can I do if I don't have a bank account and don't want one for direct deposit of my payment?
There are several options open to people without bank accounts but the one that is promoted by the Federal government is called Direct Express. In June of 2008, the U.S. Treasury Department introduced the Direct Express Debit Mastercard card. This a direct quote from the Treasury Departments' website at http://fms.treas.gov. [quote]People without bank accounts now have a user-friendly, practical alternative to paper checks for their monthly federal benefit payments," said FMS Commissioner Judith Tillman. "We know that many check recipients are eager for a card-based option for their federal benefits, and we are confident the Direct Express® card will provide many Americans an important entry point to the financial mainstream.[end quote]
Check cashing and other services typically charge heavy fees and the Direct Express card puts an end to that problem. With Direct Express, there is no sign up fee and no bank account or credit check required to enroll. The U.S. Department of the Treasury and the Social Security Administration encourage you to sign up for the card and you can learn more about this here. http://www.usdirectexpress.com/edcfdtclient/index.html
