If you receive Social Security disability benefits, there's a good chance your payments are going to a Direct Express card. While Direct Express was designed to make it easy to receive federal payments without a traditional bank account, many people find it limiting. High fees, limited features, and lack of budgeting tools leave a lot of recipients looking for something better. The good news is that switching to a regular bank account is easier than you might think.
In this article, we'll cover:
- Why many people switch away from Direct Express
- How to set up direct deposit to a new bank account step by step
- How long the switch takes and what to expect during the transition
- Common problems during the switch and how to avoid them
- What to look for in a bank account as an SSI or SSDI recipient
Why Switch from Direct Express?
Direct Express is a prepaid debit card issued by Comerica Bank on behalf of the U.S. Treasury. It works for basic transactions — you can make purchases, withdraw cash at ATMs, and pay bills. But it lacks many features that a full checking account provides.
With Direct Express, there's no way to set up automatic bill payments from your card. You can't easily track spending categories or monitor your balance against SSI resource limits. ATM withdrawals beyond one free withdrawal per month come with fees, and using out-of-network ATMs adds even more costs. For people carefully managing a fixed income, these limitations add up.
A checking account at a bank or credit union gives you more control. You get a routing number for direct deposit and bill payments, the ability to set up automatic transfers, mobile check deposit, and access to budgeting tools. Some accounts are specifically designed for people on disability benefits, with features that help you stay compliant with Social Security rules.
How to Switch Your Direct Deposit Step by Step
The process involves two main steps: opening a new bank account and then redirecting your Social Security payments to it.
First, open your new bank account. You'll need a valid ID, your Social Security number, and sometimes an initial deposit (though many accounts have no minimum). Once your account is open, make sure you have your new routing number and account number handy — you'll need these for the next step.
Next, change your direct deposit information with Social Security. You have three options for doing this. The simplest is through your my Social Security account at ssa.gov — log in, navigate to your payment information, and update your bank account details. You can also call the Social Security Administration at 1-800-772-1213 and request the change over the phone. Or, you can visit your local Social Security office in person with your new bank account information.
You should not use the Direct Express website to initiate this change — you need to go through the Social Security Administration directly.
How Long Does the Switch Take?
After you submit your new bank information, it typically takes one to two payment cycles for the change to take effect. During this transition period, your payment may still arrive on your Direct Express card. This is completely normal and doesn't mean the switch failed.
This is why it's important to keep your Direct Express card active until you've confirmed that at least one payment has been deposited into your new account. Don't close or discard your Direct Express card prematurely. Once you've verified that payments are going to your new account, you can stop using the card.
If something goes wrong during the transition — for example, a payment is sent to an account that's been closed — the payment will be returned to the Social Security Administration. You'll then need to contact SSA to have it reissued, which can take additional time. Keeping both accounts open during the transition prevents this from happening.
What to Look for in a Bank Account on Disability
Not all bank accounts are created equal, especially when you're managing disability benefits. Here are a few things to prioritize.
Look for an account with no monthly maintenance fees or low minimum balance requirements. When your income is $994 or $1,630 per month, even a $10 monthly fee makes a difference. Many online banks and credit unions offer free checking accounts with no minimums.
If you receive SSI, resource tracking is especially important. You need to keep your countable resources below $2,000 at all times. An account that helps you see your balance relative to this limit — or better yet, one that's designed specifically for benefit recipients — can save you from accidental noncompliance.
Access to free ATMs is another consideration. If you rely on cash for some expenses, paying $2-3 per withdrawal adds up quickly. Some banks offer ATM fee reimbursement or have large ATM networks.
Finally, consider whether the account offers mobile banking with features like balance alerts, spending categorization, and the ability to set up recurring payments. These tools help you stay organized and make the most of every dollar.
Switching from Direct Express to a real bank account is one of the best financial moves you can make on disability. Purple offers a checking account built specifically for SSI and SSDI recipients, with resource tracking, no hidden fees, and tools designed around your benefits.