The Social Security Administration is shaking up monthly payments for millions of beneficiaries this summer, thanks to an administrative change that’s already taking effect.
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Beneficiaries who have their checks directly deposited into their bank accounts won’t notice a difference. But the 3.6 million beneficiaries who have opted to have their checks added to Direct Express prepaid debit cards should prepare for a transition.
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The Direct Express program is getting a new financial agent
Until recently, Comerica Bank was the financial agent that administered Direct Express cards for Social Security beneficiaries who had opted not to have their payments directly deposited into a bank account. But the U.S. Department of the Treasury’s Bureau of the Fiscal Service recently announced that Fifth Third Bank, a subsidiary of Fifth Third Bancorp, would take over this responsibility. Fifth Third Bank and Comerica Bank merged earlier this year.
New Social Security beneficiaries who opt to participate in the Direct Express program will receive a debit card through Fifth Third Bank. Once you’ve received the card, you can download the Direct Express mobile app to activate it, and then use it anywhere Mastercard debit cards are accepted.
Those who already have Direct Express debit cards through Comerica Bank can continue to use these cards for the time being. They’ll receive new Fifth Third Bank Direct Express debit cards over the summer. It’s unclear exactly when these will go out.
If you’ve moved recently, make sure the Social Security Administration has your updated contact information so it knows where to send your new debit card. It should also send you an advance notice of the change by mail.
Consider using a bank account for even greater convenience
The Direct Express program is a good option for those without bank accounts. But if you do have one, you might prefer to have your money put into that account through direct deposit instead. This way, you won’t need to worry about losing the debit card.
To set up direct deposit to a bank account, you must know the bank’s routing number and your account number. Your bank can help you identify these if you’re not sure what they are.
Then, you can either create a My Social Security account and add your bank account information there, or you can contact the Social Security Administration by phone or make an appointment at your local Social Security office. Expect to provide proof of ID, whichever method you use.
If you have any questions about your Social Security benefits or the payment options available to you, contact the Social Security Administration. If you have a question about the Direct Express program specifically, contact the bank that issues your debit card for more information.
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Kailey Hagen, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard. The Motley Fool has a disclosure policy.
A New Social Security Payment Change Will Affect 3.6 Million Beneficiaries This Summer was originally published by The Motley Fool
