If you've been using Propel for your banking needs, you've likely heard the news: Propel is shutting down its banking services. For thousands of people who rely on these accounts for their disability benefits and daily finances, this means finding a new home for your money—fast. The good news is that switching to Purple is straightforward, and Purple was built specifically for people in your situation.
In this article, we'll cover:
- Why Propel is closing and what it means for your account
- Key deadlines you need to know
- Step-by-step instructions for switching to Purple
- How to change your Social Security direct deposit
- What to do if you're a representative payee
- Why Purple is the right choice for benefits recipients
What's Happening with Propel
Propel, the company behind the Providers app and its associated banking services, announced that it's discontinuing its banking and debit card features. While Propel will continue operating its benefits tracking app, the financial services component is going away.
This leaves customers needing to find a new bank account and update their direct deposit information before the deadline. If you don't act in time, your benefit payments could be delayed or returned, creating a financial emergency you don't need.
The exact timeline depends on your specific situation and when Propel communicated with you, but the message is clear: don't wait until the last minute. Setting up a new account and changing your direct deposit takes time, and any hiccup could mean going without your benefits for days or weeks.
Getting Started with Purple
Opening a Purple account takes just a few minutes and can be done entirely from your phone or computer. Here's what you'll need: your legal name and date of birth, your Social Security number, your current address, and a valid email address and phone number.
Visit app.withpurple.com and follow the prompts to create your account. Purple doesn't require a minimum deposit or charge monthly maintenance fees, so you can open your account and have it ready before you make any changes to your Propel setup.
Once your account is open, you'll receive your Purple account number and routing number. Write these down or save them somewhere safe—you'll need them to update your direct deposit.
Changing Your Social Security Direct Deposit
Most people receiving SSI or SSDI have their benefits deposited directly into their bank account. Changing this is free and can be done several ways.
Online through my Social Security: If you have a my Social Security account (or are willing to create one), this is the fastest method. Log in at ssa.gov, navigate to "My Profile," and select "Direct Deposit." Enter your new Purple routing number and account number, confirm the details, and submit. Changes typically take effect within one to two payment cycles, so make the change well before your next expected payment.
By phone: Call Social Security at 1-800-772-1213 (TTY 1-800-325-0778). You'll need to verify your identity and provide your new account information. Wait times can be long, so call early in the day and early in the week if possible.
In person: Visit your local Social Security office with identification and your new account details. This isn't the fastest option, but it's available if you prefer face-to-face interaction or are having trouble with other methods.
Direct Express: If you're currently using a Direct Express card rather than Propel, the process is slightly different. You can switch from Direct Express to direct deposit into your Purple account by calling Direct Express at 1-800-333-1795 or by contacting Social Security directly.
If You're a Representative Payee
Representative payees managing benefits on behalf of someone else have additional considerations when switching banks.
The account you use for the beneficiary's funds must be titled properly, showing your relationship as representative payee. When you open a Purple account as a rep payee, you'll go through a slightly different process to ensure the account is set up correctly.
To change the direct deposit for someone you're a representative payee for, you'll need to either update it through the representative payee's my Social Security account (not the beneficiary's account) or contact Social Security directly. The beneficiary cannot make this change themselves—it must come from the representative payee.
Purple understands representative payee requirements and offers accounts specifically designed for this purpose. Our rep payee accounts help you keep the beneficiary's funds separate from your own money and provide tools for tracking how funds are used—which you'll need for your annual accounting to Social Security.
Don't Forget Other Direct Deposits
While Social Security benefits are likely your primary concern, take this opportunity to think about any other payments that might be going to your Propel account.
State benefits like state supplemental SSI payments sometimes deposit separately from federal benefits. Other government payments such as VA benefits, state disability payments, or tax refunds also need to be considered. If you receive wages from any part-time work, those direct deposits need updating too. Automatic transfers from other accounts should be reviewed and updated if necessary.
Make a list of everything that deposits into your current account and update each one with your new Purple account information.
Managing the Transition Period
The transition between banks can be tricky, especially if your timing doesn't align perfectly with your payment schedule. Here are some strategies to make it smoother.
Keep your Propel account open and monitored until you're certain everything has switched over. Even after you've requested the change, one or two more payments might arrive at the old account. Don't drain your Propel account completely until you've confirmed your new deposits are arriving at Purple—you may need some cushion if there's a delay. Set up alerts on both accounts so you know immediately when deposits arrive. If you're an SSI recipient, be mindful of the resource limit during the transition. Having money in two accounts simultaneously could temporarily push you over $2,000.
Why Purple for Benefits Recipients
Purple wasn't built as a general-purpose bank that happens to accept benefits recipients. We built Purple specifically for people on SSI and SSDI because we understand the unique challenges you face.
Our resource tracking tools help SSI recipients see their countable resources in real-time, so there are no surprises at the end of the month. We understand which assets count and which don't, and we've designed our interface to give you clarity about where you stand.
We don't charge overdraft fees, monthly maintenance fees, or minimum balance requirements—because we know that every dollar matters when you're living on a fixed income.
Our representative payee accounts are designed for proper separation and record-keeping, making your annual accounting to Social Security much simpler.
And because we focus exclusively on the benefits community, our support team actually understands your situation when you have questions.
Don't wait for Propel's deadline to force your hand. Switch to Purple now and ensure your benefits keep flowing smoothly.