With the impending changes coming to the way Social Security benefit payments are being handled, recipients need to be ready to go along with the change. The US government has decided to do away with the paper check system long used for distribution of benefits. Instead, the Department of Treasury has ultimately decided to change from the check system to using electronic deposits.
The changes currently only affect new recipients but not too far into the future all disability recipients will no longer receive checks. In order to prepare for the changes, those receiving benefits will need to ensure they have their financial resources in order. A bank account will need to be established to handle the direct deposits. This has to be done by May 1, 2011.
Banking too has changed so it is important for you to start searching for a banking institution that meets your Social Security benefit needs if you have not already established an account. Check out the terms and fees associated with maintain the account. If you have not had an account over the last few years, you may be surprised by how much some financial institutions charge for handling your money transactions.
While the government is anticipating a savings of $120 million a year, consumers can end up paying significant fees if they do not understand how the banking system works these days. Fees for transactions that, in the past were once free, can not cost quite a few bucks. Accessing your money through an ATM can cost you an additional $3-$5 per transaction. These fees can significantly affect the income of a Social Security recipient if a budget it not put into place to account for the extra costs.