In less than 6 months, the U.S. Department of the Treasury will require millions of federal benefit recipients who currently receive paper checks to switch to an electronic payment method.
By March 1, 2013, all federal benefit payments will be electronic. Individuals applying for benefits must now choose an electronic payment option – such as direct deposit to their bank account – at the time they apply for the benefit. Individuals who currently receive paper benefit checks must switch to an electronic payment option by March 1, 2013. This change will not affect recipients who are already receiving their benefit payments electronically.
There are many advantages to electronic payments, not only for people who receive federal benefits, but for American taxpayers as well. These benefits include:
- Safety and Ease – Electronic payments provide a safer, more convenient and cost-effective way for people to get their federal benefits than paper checks. In 2010, an estimated $93 million in checks issued by the Treasury Department – including Social Security and other federal benefit payments – were fraudulently endorsed.
- Convenience – When people get payments electronically, they don’t need to go to the bank to cash or deposit a check to gain access to their money. This is particularly important to people who lack access to transportation, such as those with disabilities.
- Taxpayer Savings – With 78 million baby boomers set to retire in the next 20 years, replacing all checks with direct deposit could save taxpayers more than $120 million annually.
- Environmental Friendliness – Eliminating paper checks will provide positive benefits to the environment. For example, 12 million pounds of paper will be saved in the first five years alone.
- Signing up is easy! Simply stop into one of our branches or give us a call at (800) 922-6872 and our customer service staff can walk you through the process. It’s even easier if you let our new Deluxe SwitchAgentSM service do it for you! To find out more about direct deposit, click here!
If you have further questions, please contact us using the method that is most convenient for you.
