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U.S. Treasury and FDIC Announce Financial Literacy Partnership

WASHINGTON, D.C. - (April 18, 2006) - For many people, switching to direct deposit can be an important step toward achieving control over their money. The U.S. Department of the Treasury's Go Direct campaign today announced it will partner with the Federal Deposit Insurance Corporation (FDIC) to raise financial education awareness during April, which is Financial Literacy Month, and beyond.

Go Direct is a national campaign, sponsored by the Treasury and the Federal Reserve Banks, to motivate people who get Social Security and other federal benefits by check to switch to the safest, easiest payment option - direct deposit.

Beginning in April, Go Direct and the FDIC will work together to make the FDIC's Money Smart program - an education program to help adults enhance their money skills and create positive banking relationships - available to community-based organizations interested in hosting financial literacy workshops and programs throughout the United States. Representatives from the FDIC's six regional offices will partner with the Go Direct campaign to disseminate the Money Smart curriculum at local workshops.

"Go Direct is a natural addition to our Money Smart curriculum. Switching to direct deposit is a simple step people can take on their journey toward financial independence and security," said Lee Bowman, National Coordinator, Community Affairs, FDIC's Division of Supervision and Consumer Protection.

Judith R. Tillman, Assistant Commissioner, Financial Management Service, Treasury, agreed: "Our partnership with the FDIC will help Americans who receive federal benefit checks to better understand what direct deposit is, how it works, and why it's a safer and more convenient payment option," Tillman said. "With the FDIC's enormous reach and the support of other community partners, these workshops will play a key role in motivating people to take more control of their finances - including signing up for direct deposit."

Fostering financial security
A simple action like enrolling in direct deposit can offer much-needed peace of mind to people who rely on Social Security and other federal benefits, most of whom are seniors and people with disabilities. Direct deposit eliminates the risk of stolen checks and forgeries, and helps protect people from identity theft. It also gives people more control over their money and allows immediate access to funds from virtually anywhere.

The Go Direct campaign has found that many people have misconceptions about direct deposit. The financial literacy workshops will provide the facts on direct deposit and dispel common myths. In addition to FDIC's Money Smart materials, the Go Direct campaign is providing financial literacy materials highlighting the benefits of direct deposit, including slides that can be incorporated into existing financial literacy curriculums.

About Go Direct

Go Direct has established Web sites, www.GoDirect.org (English) and www.DirectoASuCuenta.org (Spanish), where people and organizations can learn more about the campaign and the benefits of direct deposit, as well as sign up online for direct deposit of federal benefits. The campaign also has toll-free numbers to help people sign up for direct deposit right over the telephone: (800) 333-1795 (English) and (800) 333-1792 (Spanish).