The millions of Social Security beneficiaries who do not have bank accounts will soon be able to receive their benefits in the form of a prepaid debit card, instead of a traditional paper check through the mail.  The plan recently announced by the U.S. Treasury Department is expected to save both the government and beneficiaries millions of dollars, speed access to available funds, and reduce problems associated with lost or stolen checks.

   Beginning this April, Social Security recipients without bank accounts (and without access to “direct deposit”) will be able to choose to receive a Direct Express prepaid debit card, issued by Comerica Bank.  Every month, the amount of the recipient’s Social Security benefit will be automatically deposited into the debit card account (that is, the card will be “pre-loaded” with the benefit amount) on the designated payment date.  The funds will then be immediately available at ATM machines and other locations that accept debit cards.  The Direct Express accounts will be insured by the FDIC, and protected by the recipient’s individual PIN code.

   Card holders will be allowed one (1) free ATM withdrawal per month.  Comerica Bank will charge ninety cents ($0.90) for each additional ATM withdrawal, subject to any surcharges by that particular ATM.  However, many institutions have already announced that they will waive any surcharges on Direct Express cards, including all 7-Eleven stores.  The bottom line for low-income seniors is that any Direct Express ATM fees will be less than the check cashing fees they are currently paying; moreover, these seniors will have immediate use of their money, without worrying about lost or stolen checks, or carrying large amounts of cash home from the local check-cashing establishment.

   Additional details from the federal government regarding the Direct Express Social Security prepaid debit card will be forthcoming.  As always, the Senior Advocate will provide you with the most current and accurate information available.