Change bank account for social security direct deposit

Direct deposit is a convenient way to send money directly into someone’s bank account. This service has been around for many years and is widely used by employers to pay their employees. In 2011 the Social Security Administration made it mandatory that all recipients sign up for social security direct deposit.

This mandate applies to both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). So if you’ve recently been approved for benefits, know that your payments will be made as Social Security Direct Deposit electronically.

Why is Social Security Direct Deposit Mandatory?

The SSA made the switch to Social Security Direct Deposit to keep payments safe from being lost or stolen in the mail. While some recipients may not feel comfortable or safe with the direct deposit system, this program has proved to be successful.

Direct Express

There is an option to use a program called Direct Express for SSA Direct Deposit, which basically works like a debit card. The SSA will deposit your monthly payment to your Direct Express account and then you can use your Direct Express card anywhere MasterCard is accepted.

You can even use this card to get cash from your account. This is a great option for social security recipients who don’t have a bank account that supports direct deposit. Direct Express is free to sign up for and there are no fees.

Electronic Transfer Account

If you want to use a bank account instead of Direct Express as Direct Deposit, but don’t already have a bank account, consider an electronic transfer account (ETA).

These accounts were established by the federal government to make sure people who get federal payments have a safe place to get their payments deposited directly. Most banks offer ETAs and these accounts are regulated to ensure the banks don’t charge unrealistic fees.

How to Change Social Security Direct Deposit?

You can change SSA direct deposit information if you currently receiving Social Security benefits.

So firstly, Collect the required information. Then you can use Call a helpline. If you haven’t yet set up an account on the Social Security website, you also may want to call the website. When you set up a new account, you’ll have to wait for a temporary password in the mail. This may cause a delay before you can access your account.

In order to change your direct deposit information Visit the official Social Security website (www.ssa.gov), Login into your account and change your information.

The attorneys at Jan Dils Attorneys at Law  “Social Security Disability Attorneys Virginia” will take the time to explain the entire application process as well as how Social Security Direct Deposit payments work once you’re approved. If you’re in need of help applying for SSDI or SSI benefits call today for a free consultation.

RECOMMENDED :

What is a Social Security Payee, and What Do They Do?

Information

How Do I Sign Up To Receive An Electronic Payment?

Social Security Administration Beneficiaries

Overview

Through this service, you can change the Banking Details of how you receive your benefit or update your banking details held by the department. If you are currently receiving benefit payments by cheque, you may change your details to start receiving payments by direct deposit in a bank. If you are already receiving your payments by direct bank deposits, you may change both the bank as well as the account number (International Bank Account Number – IBAN).

You can also opt to receive a payment notification via SMS when your benefit has been deposited. Through this service, you cannot change your banking details to start receiving cheque payments.

What you’ll get

• Facility to update your banking details held with the Department of Social Security online.
• Facility to change your payment method from a cheque to a direct credit.
• Facility to receive a payment notification via SMS to be informed when your benefit has been deposited.
• By authenticating with their e-ID, an Agent, Administrator, or Agent appointed by an Administrator who is duly registered with the Department of Social Security, can change the banking details of the social security beneficiary being represented.

Eligibility

General eligibility criteria:

• A person registered under the Social Security Act (Cap. 318.), can update his/her banking details held by the department even though one is not a beneficiary to date.

Requirements

To use this service, you will need:

• An e-ID account issued by Identity Malta.

Additional Information

• The indicated bank account must be a Savings or Current account, but not a Loan Account.
• The indicated bank account must be in the name of the beneficiary, or in the name of the beneficiary’s administrator registered with the Department.
• If a person is not a beneficiary but is registered under the Social Security Act, banking details held by the department must still be updated and the indicated bank account must be in the name of the registered person.
• The bank account details provided will also be used for all benefits paid.
• If a beneficiary has a garnishee order, he/she is to inform the preferred bank about the amendment to Article 381 of the Code of Organisation and Civil Procedure (Cap. 12.), to have a bank account issued in the beneficiary’s name accordingly.
• In accordance to Article 381(1)(b) of the Code of Organisation and Civil Procedure ( Cap. 12.), it shall not be lawful to issue a garnishee order upon – any benefit, pension, allowance  or assistance mentioned in the Social Security Act or a private pension or any other pension, benefit or allowance issued by the Government or other foreign government: Provided that in the case of private pensions and pensions issued by foreign governments the amount which is not subject to attachment shall not exceed the amount established for the highest pension issued by the Government.

When a Payment is not Received

If a deposit in the bank account is not finalised because of an incorrect account number or closure of an account, the claimant is to notify the Department of Social Security immediately online. The procedure is the following:

• The Department of Social Security will notify the Bank regarding the transaction.
• The Bank carries out the necessary checks to specify the reason why the direct credit was not finalised.
• If the transaction is cleared, an alternative Bank account number is to be provided by the beneficiary for payment to be processed.

This procedure normally takes from 10 to 15 days to be finalised.

How to access the service

The user must authenticate to access Banking Details service.