A new program called ‘Go Direct’ is changing the way people will receive Social Security and Veteran’s Benefits.
By March 1, 2013, those who receive a check for these types benefits will need to decide whether they want the money deposited directly into their bank account or applied to a Direct Express Card.
The change applies to everyone who receives the following federal benefits: Social Security, Supplemental Security Income, Veterans Affairs, Railroad Retirement Board, Office of Personal Management and The Department of Labor.
The Treasury Department said it’s moving to electronic benefit payments because it’s safer, more convenient and it provides savings to taxpayers. The government will also save $120 million by not sending out paper checks.
The Treasury said that one of the perks to this change is that recipients won’t have to make a trip to the bank to deposit their money, which is especially important for the elderly and disabled.
For people who have a bank account, they will need to provide their account and routing numbers to get their money.
For those who don’t want to use direct deposit, the second option is a Direct Express Card. This is essentially a debit card with a MasterCard logo. The card allows people to take money from ATMs and receive cash back with purchases and when visiting a bank.
Now, for people who already receive their benefits electronically, no changes need to be made. That money will continue to be distributed as usual.
This program does have some exceptions. For more information on these changes click HERE.