If you receive Supplemental Security Income, you might wonder whether having a bank account could put your benefits at risk. It's a valid concern — SSI has strict resource limits, and the last thing you want is to lose the benefits you depend on. The good news is that yes, you can absolutely have a bank account while receiving SSI, and in many cases, it's the smartest way to manage your money.
In this article, we'll cover:
- Whether SSI recipients are allowed to have bank accounts
- How SSI resource limits work and what counts toward them
- The difference between income and resources in Social Security's eyes
- Tips for keeping your bank account balance within safe limits
- How the right bank account can actually help you stay compliant
SSI Recipients Can — and Should — Have Bank Accounts
There's a common misconception that people on SSI shouldn't have bank accounts at all. That's not true. Social Security does not prohibit you from having a checking account, savings account, or both. In fact, most SSI recipients receive their payments through direct deposit, which requires a bank account.
What Social Security does care about is how much money is in your accounts at any given time. That's where the resource limit comes in, and it's the reason so many people feel anxious about banking while on SSI.
Understanding the SSI Resource Limit
SSI has a resource limit of $2,000 for individuals and $3,000 for couples. Resources include cash, money in bank accounts, stocks, bonds, and other assets that could be converted to cash. Your home and one vehicle are generally excluded, but most other things of value count.
Here's the key detail: Social Security looks at your countable resources on the first of every month. If your combined resources — including bank account balances — exceed the limit on that date, you could lose your SSI payment for that month.
This doesn't mean you can never have more than $2,000 in your account. If your SSI payment hits your account on the first and brings your balance above the limit temporarily, Social Security generally gives you time to spend down those funds. But consistently carrying a balance above the limit is where problems arise.
Income vs. Resources: An Important Distinction
Social Security treats income and resources differently. When your SSI payment is deposited into your account, it's considered income for that month. Any portion you don't spend by the end of the month becomes a resource the following month.
For example, if you receive your $994 SSI payment on the first and you had $1,200 in your account, your balance would be $2,194. That's technically over the resource limit, but because the $994 is still considered income for the current month, you're not in violation. However, if you still have $2,194 sitting in your account on the first of the next month, that entire balance is now counted as a resource, and you'd be over the limit.
This is why timing and tracking matter so much for SSI recipients.
Tips for Managing Your Bank Account on SSI
Staying within the resource limit doesn't have to be stressful, but it does require some awareness. Pay your bills and necessary expenses early in the month so your balance naturally decreases before the next count date. Keep a rough mental note of where your balance stands as the end of the month approaches, and avoid letting money pile up across multiple accounts — Social Security looks at all of them combined.
If you receive a lump sum, such as a back payment or a small gift, spend it down on allowable expenses or look into putting it in an ABLE account, which lets eligible individuals with disabilities save up to $100,000 without affecting SSI eligibility. ABLE accounts accept up to $20,000 per year in contributions and are one of the best tools available for SSI recipients who want to save.
How the Right Bank Account Helps
Not all bank accounts are created equal when you're on SSI. A standard checking account won't warn you if you're approaching the resource limit or help you track what Social Security considers countable. That's where having an account designed for benefit recipients makes a real difference.
The right account can give you visibility into your balance relative to your limits, help you separate funds, and take some of the guesswork out of compliance. Instead of worrying every month, you can manage your money with confidence.
Having a bank account on SSI isn't just allowed — it's encouraged. Purple's checking account is built specifically for SSI recipients, with tools to help you track your resources and stay within your limits.