Yes, you can have a bank account while receiving SSI. But there are important rules about how much you can keep in it. Here's what you need to know.
In this article, we'll cover:
- Bank account rules for SSI
- The $2,000 resource limit
- What counts and what doesn't
- Strategies for staying compliant
1. Bank Account Rules for SSI
You can have a bank account:
- SSI doesn't prohibit bank accounts
- Direct deposit is actually encouraged
- Checking and savings both allowed
- No restriction on account type
What SSA cares about:
- Your total countable resources
- Not the existence of an account
- How much is in it
- Whether you stay under limits
Why you need one:
- Direct deposit is faster
- Paper checks ending
- Easier money management
- Record of spending
The key rule:
- Keep total resources under $2,000
- For couples: Under $3,000
- Check balance on first of month
- That's when SSA looks
2. The $2,000 Resource Limit
What's the limit:
- $2,000 for individuals
- $3,000 for couples
- Checked monthly
- First day of month matters most
What happens if you go over:
- Benefits suspended
- Must spend down
- Report to SSA
- May need to repay
How SSA knows:
- Data matching with banks
- Regular reviews
- Redetermination checks
- They can see your accounts
Important: SSA can access bank records. Don't assume they won't find out about your accounts.
3. What Counts and What Doesn't
Counts toward limit:
- Bank account balances
- Cash on hand
- Stocks and bonds
- Second vehicles
- Property (not your home)
Doesn't count:
- Your home
- One vehicle
- Household goods
- Personal effects
- Burial funds (up to $1,500)
- ABLE account funds
Special exclusions:
- Certain trusts
- ABLE accounts (up to $100,000)
- Property used for self-support
- Life insurance under $1,500 face value
Month-to-month:
- Balance checked monthly
- Brief overages may trigger review
- Consistent overages suspend benefits
- Report large deposits immediately
4. Strategies for Staying Compliant
Track your balance:
- Know your balance daily
- Plan for first of month
- Spend down if needed
- Keep records
Use an ABLE account:
- Save beyond $2,000
- Doesn't count toward limit
- Tax-free growth
- Qualified expenses
Time large deposits:
- Plan when money arrives
- Spend before month end
- Convert to excluded resources
- Document everything
Spend on allowed items:
- Prepay rent
- Buy needed items
- Pay down debts
- Purchase excluded assets
What to Avoid
Risky behaviors:
- Hiding money in others' accounts
- Not reporting changes
- Assuming SSA won't check
- Ignoring the limit
Consequences:
- Overpayments
- Benefit suspension
- Potential fraud charges
- Stress and complications
Better approach:
- Be honest and transparent
- Use legal tools (ABLE)
- Track everything
- Report proactively
How Purple Helps
- Track your balance in real time
- See spending patterns
- Get alerts near limits
- Easy ABLE integration
- Simple record keeping