Opening a bank account while receiving disability benefits is not only possible—it's often essential for managing your finances effectively and receiving your benefits through direct deposit.
In this article, we'll cover:
- Why being on disability doesn't prevent you from opening a bank account
- Key differences between SSDI and SSI when it comes to banking
- What to look for in a bank account as a disability recipient
- How to avoid fees that eat into your limited income
- Special account options designed for people with disabilities
Yes, You Can Open a Bank Account on Disability
Receiving SSDI or SSI does not disqualify you from opening a bank account. In fact, Social Security encourages direct deposit as the safest and most reliable way to receive your benefits. Banks cannot discriminate against you based on your income source, and disability benefits are considered legitimate, verifiable income.
You'll need the same basic documentation as anyone else: a government-issued ID, your Social Security number, and proof of address. Some banks may ask for additional verification, but your disability status itself is not a barrier.
SSDI vs. SSI: Different Banking Considerations
If you receive SSDI, you can open any type of bank account without worrying about how it affects your benefits. SSDI has no asset limits, so your account balance—whether $100 or $100,000—won't impact your eligibility.
SSI is different. Because SSI has a $2,000 resource limit for individuals ($3,000 for couples), the money in your bank account counts toward that cap. You can still open an account, but you'll need to monitor your balance carefully to avoid exceeding the limit and losing benefits.
What to Look for in a Bank Account
When you're living on a fixed income, every dollar matters. Look for accounts with no monthly maintenance fees, no minimum balance requirements, and no overdraft fees. Many online banks and credit unions offer fee-free accounts that work well for disability recipients.
Also consider whether the bank offers good mobile and online access, which can be important if mobility or transportation challenges make visiting a branch difficult.
Avoiding Fees That Add Up
Traditional banks often charge fees that can quickly drain a limited budget. Monthly maintenance fees of $10-15 might seem small, but that's $120-180 per year taken from benefits meant to cover basic needs.
Ask specifically about fee waivers. Some banks waive monthly fees if you set up direct deposit of your disability benefits. Others have second-chance accounts for people who've had banking problems in the past.
Special Account Options for People With Disabilities
Beyond regular checking and savings accounts, consider whether an ABLE account might benefit you. ABLE accounts allow people with disabilities to save up to $100,000 without affecting SSI eligibility—a game-changer for anyone trying to build financial security while protecting their benefits.
Some banks and credit unions also offer accounts specifically designed for representative payees or people receiving government benefits, with features that help track spending and stay within resource limits.
Looking for a bank account built for disability benefits? Purple offers checking accounts designed specifically for SSI and SSDI recipients, with no hidden fees and tools to help you stay compliant.