Having a bank account while on SSI is completely fine—and often necessary. The key is managing it properly so you don't exceed the resource limit. Here's what you need to know.
In this article, we'll cover:
- Can you have a bank account on SSI
- How bank accounts affect your benefits
- Tips for choosing the right account
- Managing your account to stay compliant
1. Can You Have a Bank Account on SSI
Yes, you can:
- Having a bank account is allowed
- In fact, SSA encourages direct deposit
- You just need to stay under the resource limit
- The account itself isn't the problem—the balance is
What matters:
- Your total countable resources
- Not how many accounts you have
- Not what type of account
- Just the total balance on the 1st of each month
Multiple accounts:
- You can have checking and savings
- All balances count together
- Track the total across all accounts
- Stay under $2,000 combined
2. How Bank Accounts Affect Your Benefits
Counting resources:
- Cash in bank = countable resource
- Checking and savings both count
- Money market accounts count
- CDs count
The $2,000 limit:
- Total resources can't exceed $2,000 (individual)
- $3,000 for couples
- Checked on the 1st of each month
- Includes all countable resources
What doesn't count in your account:
- ABLE account funds (separate account type)
- Funds from certain excluded sources
- Some retroactive benefits (for 9 months)
SSA's access:
- SSA can verify your bank information
- You authorized this during application
- They use the AFI system
- Discrepancies can cause problems
Important: Opening a bank account doesn't put your benefits at risk—having more than $2,000 in it does.
3. Tips for Choosing the Right Account
Look for:
- No minimum balance requirements
- Low or no monthly fees
- No overdraft fees (or easy opt-out)
- Easy direct deposit setup
- Good mobile app
- Early direct deposit option
Avoid:
- Accounts with high minimum balances
- Accounts that penalize low balances
- High monthly fees
- Complicated fee structures
Good options:
- Online banks (often no fees)
- Credit unions (member-focused)
- Fintechs designed for low-income users
- Purple (built for people on benefits)
Questions to ask:
- What are the monthly fees?
- Is there a minimum balance?
- Do you offer early direct deposit?
- What are the ATM fees?
- How do I avoid overdraft fees?
4. Managing Your Account to Stay Compliant
Track your balance:
- Check regularly, especially before the 1st
- Know your total across all accounts
- Include cash on hand
- Stay below $2,000
Set up alerts:
- Balance alerts from your bank
- Reminders before the 1st
- Track when deposits arrive
- Know when bills go out
Spend down when needed:
- Pay bills before the 1st
- Buy necessities
- Don't let money accumulate
- Plan ahead
Keep records:
- Save bank statements
- Document large transactions
- Keep receipts for major purchases
- Be ready for SSA questions
Consider ABLE:
- Open an ABLE account for savings
- Transfer excess funds there
- First $100,000 doesn't count for SSI
- Better place for money over $2,000
Common Mistakes to Avoid
Don't let balance grow unchecked:
- Money sitting in savings accumulates
- Small amounts add up
- Check before each month end
- Transfer to ABLE if needed
Don't forget about all accounts:
- Old accounts still count
- Inactive accounts with money count
- Close or empty accounts you don't use
- Track everything
Don't ignore account interest:
- Interest is income and resource
- Small amounts add up
- Account for it in your tracking
- Usually minimal but still counts
How Purple Helps
Purple is designed for SSI recipients:
- Easy to open and use
- Real-time balance tracking
- Resource limit alerts
- Early access to benefits
- ABLE account integration
- No hidden fees