Frequently Asked Questions

	What is direct deposit?
	Direct deposit delivers your Social Security or Supplemental Security Income (SSI) benefit into your bank, savings and loan or credit union's account quickly and safely. The U.S. Treasury sends an electronic message to your bank, savings and loan or credit union crediting your account with the exact amount of your Social Security or SSI benefit. You can withdraw money, put some in savings or pay bills-the things you do with your money now. The difference is, your check isn't printed or mailed.
	Do I have to use direct deposit?
	Social Security strongly encourages all Social Security and SSI beneficiaries to receive their monthly benefits by direct deposit. As of January 2007, 80 percent of all Social Security and SSI beneficiaries received their benefits by direct deposit. You can still receive your Social Security or SSI benefit by check, but you should consider the many benefits direct deposit offers.
	I'm interested in direct deposit but I don't know if it's right for me. What should I do?
	If you are interested in signing up for direct deposit but think you need more information, you can do one of the following: If you have an account, go to your bank, savings and loan or credit union. They can answer your questions about direct deposit. If you don't have an account, consider opening one and sign up for direct deposit at that time. Most banks, savings and loans and credit unions offer a variety of accounts, some with little or no fees. Look for one that meets your needs. Consider opening a low-cost Electronic Transfer Account (ETA) that features a maximum cost of $3.00 per month and a minimum of four cash withdrawals per month.
	Why should I sign up? What are the benefits of using direct deposit?
	The benefits of using direct deposit are: There are no checks to be lost or stolen. You'll get your benefits on time, even if you're out of town, sick or unable to get to the bank. Both you and your money are safe.
	Where do I sign up for direct deposit?
	If you already have a checking or savings account, ask at your bank where you have an account. They'll be glad to help you. Be sure to take your bank statement or personal check, and your Social Security number when you go to sign up. If you don't have an account, most banks offer a variety of accounts, some with little or no fees. Some financial institutions offer low-cost Electronic Transfer Accounts (ETA) that feature a maximum cost of $3.00 per month and a minimum of four cash withdrawals per month. Look for one that meets your needs. You can also call Social Security's toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) . If you call Social Security, we'll need to determine your identity by asking you a few questions. We'll also need your banking information and your Social Security number. Or, you can sign up here.
	When I sign up for direct deposit, how long does it take before my money is in my account?
	When you sign up for direct deposit, you can expect your benefit to be deposited to your account within 30 to 60 days. We'll send you a letter telling you when to expect your benefit to be in your bank account.
	How do I know when my money is in my account so I can pay my bills?
	Your money is deposited on the day you're scheduled to receive your benefit. For example, if you usually receive your benefit on the third of the month, your money is available to you at the opening of the business day on the third. You can check with your bank to be sure that your money has been deposited.
	When can I use my money?
	Your money is available for use as soon as it is deposited into your account. You can write checks, pay bills, withdraw money or put some into savings. Anything you usually do with your money now, you can also do with direct deposit.
	If I get SSI benefits by direct deposit, how do I get proof of my benefit amount so I can apply for the energy assistance program?
	If you are a Social Security or SSI beneficiary using direct deposit, you'll receive a notice in December showing your benefit amount that includes the annual cost-of-living increase that goes into effect in January. You can use this notice when you need proof of your benefit amount for the energy assistance program, food stamps, rent subsidies, bank loans or other business. If you don't receive your benefit by direct deposit, call Social Security's toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) , for proof of your benefit amount.
	Do I have to use direct deposit if my bank requires me to keep a minimum balance in order to open a checking account?
	No, you can continue to get a check if using direct deposit is not right for you. But, you may want to consider a low-cost account called the Electronic Transfer Account. An Electronic Transfer Account is available through participating Federally insured financial institutions, including banks, savings and loans, and credit unions. The account, which provides the full range of consumer protections, is available to any one who receives a Federal benefit, wage, salary or retirement payment. Features of an Electronic Transfer Account include- a maximum cost of $3.00 per month; a minimum of four cash withdrawals per month.
	After I sign up for direct deposit, do I have to stay with the same bank?
	No, you can use direct deposit at any federally insured bank, savings and loan or credit union. If you move your account, call Social Security's toll-free number, 1-800-772-1213 (TTY 1-800-325-0778), and a Social Security representative will change your direct deposit information. Open the new account and make sure your deposits are going to the new bank, savings and loan or credit union before you close the old account.
	I'm a representative payee for someone who receives Social Security or SSI benefits? Can I use direct deposit?
	Yes, as a representative payee, you can use direct deposit to receive the Social Security or SSI benefits for someone in your care. The safety and convenience of direct deposit can work for you too.
	I realize direct deposit will be more convenient for me, but what are the benefits to the government?
	In addition to being safe and convenient for beneficiaries, direct deposit is more efficient and saves money for the government because it's cheaper than if we prepare and mail monthly checks. In addition, the cost of replacing lost, stolen or missing check is eliminated.
	Can Social Security benefits be garnished by creditors to pay a debt?
	Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions: Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations; Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes; Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year; The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid. The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act as long as they are identifiable as Social Security benefits using normal banking practices. For example, only social security benefits are deposited into a particular bank account. If a creditor tries to garnish your social security check, inform them that unless one of the five exceptions apply, your benefits can not be garnished. You also may want to provide this same information to your financial institution and seek legal assistance if you believe it is needed. NOTE: Supplemental Security Income payments cannot be levied or garnished.


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