News You Can Use Distributed 01/12/07
Direct deposit is easier and more convenient than getting a check in the mail. Yet, despite the advantages, many people who rely on Social Security and Supplemental Security Income (SSI) still receive their payments by check, according to LSU AgCenter family economics professor Dr. Jeanette Tucker.
The U.S. Department of the Treasury and the Federal Reserve Banks are encouraging federal benefit recipients to "Go Direct" and use direct deposit. With direct deposit, your Social Security, SSI, Veterans Affairs or other government payment goes straight to your checking or savings account. Your money is always there on payment day as soon as the bank or credit union opens.
"Direct deposit is the safest and easiest way for people to get their Social Security and SSI payments and provides the recipient with more control," Tucker says, adding, "It is safer because checks can get lost or stolen, but with direct deposit you get your money on time, every time."
Your payments go straight into your checking or savings account, protecting you from having your money or identity stolen. Direct deposit is easier because you don’t have to go to the bank or credit union to deposit your check; your money is in your account on your payment day.
You can travel, spend more time with friends and family, and your money will be in your account when you need it. Direct deposit provides you with more control because you don’t have to let your check rule your schedule; your payment is in your account at the same time each month. It allows immediate access to funds from virtually anywhere.
"A simple action like enrolling in direct deposit can offer much-needed peace of mind to people who rely on federal benefits, most of whom are seniors and people with disabilities," the family economist points out.
In addition, direct deposit saves taxpayers money. It costs 75 cents more to issue a federal benefit payment check than to issue an electronic payment. The government mails more than 150 million benefit checks each year.
"If everyone who currently receives a federal benefit check switched to direct deposit, it would save taxpayers about $120 million dollars annually in printing and postage costs," Tucker says. The money saved could be used to cover the costs of future Social Security payments – a benefit to all Americans for generations to come. This is especially relevant, given that baby boomers will start reaching retirement age in 2008.
It only takes a few minutes to switch your Social Security, SSI, Veteran’s Affairs or other government check to direct deposit. You can sign up or get more information by phone, in person or online. To sign up by phone call the toll-free Go Direct helpline at 1-800-333-1795 (English) or 1-800-333-1792 (Spanish). Assistance can be provided at these numbers even if you don’t have a bank account.
To sign up in person, visit your bank or Social Security office. You will need to bring your Social Security number, bank account number and bank routing number. Or visit www.GoDirect.org for more information and other sign-up options.