If you're receiving disability benefits and wondering whether it's safe to have a savings account, you're not alone. This is one of the most searched questions among benefit recipients, and the answer depends entirely on which program you're on. For some people, a savings account poses no risk at all. For others, every dollar saved needs careful attention. Understanding where you fall makes all the difference.
In this article, we'll cover:
- Whether a savings account affects SSI benefits
- Whether a savings account affects SSDI benefits
- How Social Security counts bank account balances
- The $2,000 resource limit and how it works
- Safe ways to save money while on SSI
- Alternatives to traditional savings accounts
Savings Accounts and SSI
If you receive Supplemental Security Income (SSI), a savings account absolutely can affect your benefits. SSI has a resource limit of $2,000 for individuals and $3,000 for couples, and the money in your savings account counts toward that limit. So does the money in your checking account, any cash you have on hand, and most other financial assets.
Social Security looks at your total countable resources on the first of every month. If the combined balance of all your accounts — checking, savings, and any other countable assets — exceeds the limit on that date, you're at risk of losing your SSI payment for that month.
This means that for SSI recipients, having a savings account is technically allowed, but keeping a meaningful balance in it is nearly impossible without exceeding the resource limit. When your checking account already holds your SSI payment and your monthly expenses, there's almost no room left for savings. This is one of the most frustrating realities of the SSI program — it effectively discourages the very financial behavior that most people consider responsible.
Savings Accounts and SSDI
If you receive Social Security Disability Insurance (SSDI) only, a savings account has no effect on your benefits. SSDI is not a needs-based program — it's based on your work history and the taxes you paid into the system. There is no resource limit, no asset test, and no restriction on how much money you can have in the bank.
You can have $500 in savings or $500,000, and your SSDI payment remains exactly the same. This is a major difference between the two programs and one of the reasons it's so important to know which type of disability benefit you receive.
If you receive both SSI and SSDI (concurrent benefits), the SSI resource limit does apply to you. Even though your SSDI payment isn't affected by your savings, your SSI portion is — and exceeding the resource limit could result in losing the SSI component of your benefits.
How Social Security Counts Your Money
Social Security doesn't just look at one account. They consider the total of all countable resources you own. This includes every bank account in your name (including joint accounts where your ownership share counts), certificates of deposit, stocks, bonds, cash value of life insurance policies above $1,500, and any other financial assets that could be converted to cash.
Certain things are excluded from the count: your primary home, one vehicle, household goods and personal effects, life insurance with a face value of $1,500 or less, burial funds up to $1,500, and property you need for self-support. But standard savings and checking account balances count in full.
Social Security verifies your resources through periodic redeterminations, during which you'll be asked to provide bank statements. They also have access to financial databases that can flag accounts and balances, so underreporting your resources isn't a viable strategy — and attempting it can lead to penalties and overpayment demands.
Safe Ways to Save on SSI
Despite the resource limit, SSI recipients do have some legitimate options for building savings.
ABLE accounts are the most powerful tool available. If you have a disability with an onset before age 46, you can open an ABLE account and save up to $100,000 without it counting toward the SSI resource limit. You can contribute up to $20,000 per year, and the funds can be used for a wide range of qualified disability expenses including housing, transportation, education, and health care. Money in an ABLE account grows tax-free when used for these purposes.
Plan to Achieve Self-Support (PASS) is a Social Security program that lets you set aside income and resources for a specific work goal. If you're saving money to start a business, pay for education, or buy equipment you need for employment, a PASS plan can exclude those funds from the resource count. PASS plans require Social Security approval and must have a clearly defined goal, but they're an underutilized option for people who want to work toward financial independence.
Special needs trusts are another option, particularly for larger amounts. A properly structured trust holds assets for your benefit without counting them as your resources. These require legal assistance to set up but are invaluable for families planning long-term financial security for a loved one with a disability.
The Bigger Picture
The $2,000 resource limit hasn't been adjusted for inflation since 1989, which means SSI recipients today are held to the same dollar amount that was set over 35 years ago. There are ongoing legislative efforts to raise this limit, and any increase would be welcome news for the millions of people who currently can't maintain even a modest emergency fund without risking their benefits.
Until the limit changes, the best approach is to use every available tool — ABLE accounts, PASS plans, and careful monthly monitoring — to manage your finances within the rules. Having the right bank account also helps enormously. When your account gives you clear visibility into your balance relative to the resource limit, you can save what you safely can and avoid costly mistakes.
Saving money shouldn't mean risking your benefits. Purple's checking account is designed for SSI and SSDI recipients, with built-in tools to help you track your resources and stay compliant.