Is It Safe to Switch Banks After Charlie Shuts Down? What You Need to Know
- Purple
- 7 minutes ago
- 3 min read
If you used the Charlie app for banking and direct deposit — and just learned they’re shutting down — you’re not alone. Thousands of people 62 and older are now asking the same question:
Is it safe to switch banks right now?
The answer is yes — as long as you do it the right way. Whether you’re receiving Social Security, SSI, SSDI, or retirement benefits, here’s how to switch to a new account safely and without risking delays.
1. Your Money Is Still Yours — Even If Charlie Is Shutting Down
If you had funds in your Charlie account, those deposits are protected. The underlying partner bank (like Sutton Bank or similar) still holds the money — and federal banking laws require that you have a way to access it.
But now’s the time to move your direct deposit somewhere new — before your next check is scheduled.
2. Don’t Close Your Charlie Account Right Away
It’s tempting to close your account the moment you open a new one — but don’t do that just yet.
Instead:
Open your new account first
Update your direct deposit info with Social Security (SSA)
Wait for the next deposit to arrive in the new account
Then close your Charlie account once everything is confirmed
That’s the safest way to avoid bounced payments or delays.
3. Watch Out for Scams
When fintech companies shut down, scammers step in fast. Be alert for:
Fake calls claiming to help with your Social Security payment
Links asking you to “verify” your account or click to move funds
Social media posts pretending to be from Charlie
Only update your direct deposit through:
The official SSA website: ssa.gov/myaccount
The SSA phone line: 1-800-772-1213
Your new bank or app (if they provide secure tools)
4. Choose a Safe Replacement for Benefits
If you’re over 62 or receive SSI or SSDI, choose a bank that understands benefit payments — and helps you stay compliant.
Here’s what to look for:
Accepts SSI, SSDI, and retirement direct deposits
Offers early direct deposit access¹
Sends clear deposit alerts
Has no surprise fees
Lets you talk to a real human if something goes wrong
Purple is built specifically for people on disability or fixed income. You can open an account in minutes and set up direct deposit from Social Security.
5. Switching Doesn’t Risk Your Benefits — But Missing a Payment Might
Many people worry that changing bank accounts could confuse the Social Security Administration (SSA). But that’s not true.
You are allowed to switch accounts at any time. The key is doing it before your next deposit.
If the SSA tries to send your payment to a closed or inactive account, the money can bounce back — and that’s where delays happen. So get ahead of it and make the change now.
Ready to Switch? Try Purple.
If you’re looking for a simple, safe replacement for Charlie, Purple gives you:
Early direct deposit (up to 4 days)¹
Built-in tools to track benefits
No monthly fees
Live human support
Designed for SSI, SSDI, and fixed-income life
Purple is a financial technology company, not a bank. Banking services provided by OMB Bank, Member FDIC. The Purple Mastercard® Debit Card is issued by OMB Bank, Member FDIC, pursuant to license from Mastercard.
¹ Early access is not guaranteed and depends on payer timing. We generally make funds available on the day we receive the payment file, which may be up to 4 days early for government benefits like SSI or SSDI, and up to 2 days early for other deposits. Early access is available at no additional cost.