Direct Deposit of Social Security

By Jim Evans

“I was worried about identity theft and the check being stolen right from my mailbox, so I thought direct deposit was so much safer. If I’m gone for the day and on vacation I don’t have to worry about the check being in my mailbox all day.”

— Marie Miklya, 75

Direct deposit of Social Security or other government payments is nothing new. In fact, it has been growing in popularity for decades, and more and more seniors are taking advantage of this simple and cost effective deposit method where their monthly Social Security benefits go directly from the U.S. Treasury to their bank account on payment day and funds are immediately accessible as soon as their bank or credit union opens for business.

Why direct deposit? For one thing it is infinitely more convenient, timely, and cost effective than sending a check in the mail. Recipients always receive their money on time at the same time each month — there is no chance of delay in the mail with direct deposit — and it saves millions of dollars annually in postage and printing for a net savings (12 million checks at $.075 per payment) which can be used for future benefits. For another, no direct deposit has ever been lost or stolen — unlike checks — and the recipient’s money and personal information are more secure preventing theft of funds or identity.

The U.S. Department of the Treasury and the Federal Reserve Bank are co-sponsoring a national campaign — which kicked off in the Fall of 2005 — to motivate more people to receive their federal benefits in the safest, easiest, and fastest way possible — direct deposit appropriately named GoDirect.

Four out of five recipients of federal benefits already take advantage of direct deposit. And why not? It only takes a few minutes to GoDirect and switch Social Security, Supplemental Security Income (SSI), Veterans Affairs or other government check to direct deposit.

How to sign up?

BY PHONE

Call the toll-free Go Direct hotline:

• English 1-800-333-1795

• Spanish 1-800-333-1792

IN PERSON

Visit your bank or Social Security office with:

• Social Security number

• Bank account number

• Bank routing number (the long number at the bottom left-hand corner of the check preceding the colon and before the account number)

ONLINE

Go to www.GoDirect.org for more information or other sign-up options.

“I like direct deposit,” says Bill Murphy, 86, “because it’s so convenient. I don’t have to make a trip to the bank every month. I know the money is in my account the same day every month. I’ve used it for 19 years, and I’ve had no problem.”

GoDirect is the safest and easiest way to receive Social Security or SSI payments. GoDirect now! (source: U.S. Department of the Treasury and Federal Reserve Bank).