Social Security is Going Green
Sign Up for Direct Deposit
What is the time schedule for direct deposit?
Any new folks just hitting the point where they can start collecting Social Security will only have the option of direct deposit. That new plan goes into effect on May 1, 2011. If you are already on the books and receiving Social security payments, you have until March 1, 2013 to switch over to direct deposit.
How many people receive Social Security payments?
According to AARP, 58 million retirees are receiving money from Social Security currently and that includes Social Security or Supplemental Security benefits such as disabled people and surviving family member benefits.
How many people are receiving Social Security monthly payments via check?
Currently there 120 million payments made by mail each year. There are another 15 million annual checks that go out for veterans and other types of annual payments.
Why not make the switch to direct deposit?
Look at it this way, you don't have to make a trip to the bank to cash or deposit a check. It just shows up in your bank on the day it is supposed to. There is no chance of a check being lost or stolen. It makes perfect sense. It is easy to do.
How much money will be saved by the Government?
1 billion dollars will be saved over the next 10 years.
Are there any exceptions to the new system?
Yes, the 270,000 seniors over 90 years of age will be allowed to continue receiving their monthly payments via check.
What if people don't have a bank account?
Those people will be allowed to use a Direct Express debit Mastercard from Comerica Bank.
Summary
If you are below the age of 90 and still receiving your Social Security payments via a paper check, you should go ahead and switch over to direct deposit. You will have to do it anyway, and it's so much easier that you will be glad you did.
If you want to read more about this big change, click here.
Source:
Aarp.org
Published by Abby Greenhill
Abby is a retired Administrative Assistant. She is a pet lover who has many years experience as a dog owner. She loves to take road trips anywhere up and down the East Coast and tries to stay current on ne... View profile
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27 Comments
Post a CommentI'm good to go!
Hope you had a happy Christmas and a wonderful New Year ahead...:0)
It makes sense. Direct deposit is sooooo much more convenient.
Great work! Happy Holidays =0)
A helpful nudge in the right direction! Thanks, Greenhill!
Good report/explanation.
I have some friends who won't do anything electronic they won't even look at their accounts online. Not sure how they will like this kind of thing if it is demanded.
I saw this report yesterday--i knew it would come sooner over later. well done!
Good information to get out there. Automatic deposits are so much nicer.
Thank you for the informative article - happy holidays!