Having a bank account makes managing your disability benefits easier and can even get you paid early. Here's how to open an account while protecting your benefits.
In this article, we'll cover:
- Why you need a bank account
- What you need to open an account
- Best accounts for disability recipients
- SSI considerations
- Step-by-step process
Why You Need a Bank Account
Benefits of having a bank account:
- Direct deposit (faster than checks)
- Early access to benefits (some banks)
- Safer than carrying cash
- Pay bills online
- Track your spending
- Build financial history
Without a bank account:
- Must use Direct Express or checks
- Pay check cashing fees
- No early access to benefits
- Less financial flexibility
- Harder to pay bills
What You Need to Open an Account
Basic requirements:
- Government-issued photo ID
- Social Security number
- Proof of address
- Initial deposit (sometimes)
Acceptable ID documents:
- Driver's license
- State ID card
- Passport
- Military ID
Proof of address:
- Utility bill
- SSA benefit letter
- Lease agreement
- Government mail
Good news:
- SSI/SSDI doesn't disqualify you
- Income level doesn't matter
- Disability status not a barrier
- Most banks accept benefit recipients
Best Accounts for Disability Recipients
Look for:
- No monthly maintenance fees
- No minimum balance
- Early direct deposit
- Free ATM access
- Easy mobile banking
Purple:
- Designed for disability recipients
- Get benefits up to 4 days early
- No monthly fees
- No minimum balance
- 55,000+ free ATMs
Credit unions:
- Often more flexible
- Lower fees
- Member-focused
- May have second chance accounts
Online banks:
- Usually no fees
- Easy to open
- Good mobile apps
- Competitive features
What to avoid:
- High monthly fees
- Minimum balance requirements
- Overdraft fees
- Limited ATM access
SSI Considerations
The $2,000 resource limit:
- Bank balance counts toward limit
- Checked on the 1st of each month
- Must stay under $2,000 ($3,000 for couples)
- Includes all bank accounts
Having a bank account is fine:
- You can have a bank account on SSI
- Just manage your balance
- Spend down before the 1st if needed
- Track your total resources
Tips for SSI recipients:
- Choose low/no fee accounts
- Don't let balance accumulate
- Pay bills before month end
- Track balance regularly
Multiple accounts:
- You can have multiple accounts
- All count toward limit
- Track total across all accounts
- One account may be simpler
Step-by-Step Process
Step 1: Choose a bank
- Compare features
- Check fees
- Look for early direct deposit
- Consider accessibility (branches, ATMs)
Step 2: Gather documents
- Photo ID
- Social Security number
- Proof of address
- SSA benefit letter (helpful)
Step 3: Apply
Online:
- Go to bank's website
- Click "Open Account"
- Fill out application
- Upload or enter ID info
- Submit application
In person:
- Visit branch
- Ask to open account
- Provide documents
- Complete application
- Make initial deposit (if required)
By phone:
- Call bank's customer service
- Say you want to open account
- Provide information verbally
- Complete process as directed
Step 4: Fund the account
- Initial deposit (if required)
- Many online banks: no minimum
- Or wait for first direct deposit
Step 5: Set up direct deposit
- Get routing and account numbers
- Update with Social Security
- Online at ssa.gov/myaccount
- Or call 1-800-772-1213
If You've Been Denied Before
Common reasons for denial:
- ChexSystems record
- Previous overdrafts
- Fraud on previous account
- Identity verification issues
Solutions:
Second chance accounts:
- For people with banking history issues
- Limited features at first
- Can graduate to regular account
- Many banks offer these
Banks that don't use ChexSystems:
- Some online banks
- Some credit unions
- Ask before applying
Clear up ChexSystems:
- Request your report
- Dispute errors
- Pay old debts
- Wait for items to age off (5 years)
After Opening Your Account
Set up direct deposit:
- Log into my Social Security
- Select "Change Direct Deposit"
- Enter routing number
- Enter account number
- Submit
Enable features:
- Mobile banking app
- Account alerts
- Text notifications
- Email alerts for deposits
Manage your account:
- Check balance regularly
- Track spending
- Watch for SSI limit (if applicable)
- Review statements
Common Questions
Can I be denied for being on disability? No. Banks cannot discriminate based on disability or source of income.
Will opening an account affect my SSI? Having an account doesn't affect SSI. Only your balance matters (must stay under $2,000).
Can I have multiple accounts? Yes, but for SSI, all balances count toward your $2,000 limit.
What if I have no ID? You can get a state ID from the DMV. Some states offer free IDs for low-income residents.
How Purple Helps
Purple makes banking simple for disability recipients:
- Open account in minutes
- No ID appointment needed
- Get benefits up to 4 days early
- No fees or minimums
- Easy balance tracking
- Designed for your needs
Open a Purple account today and start getting your benefits sooner.