Is Your Bank Making You Lose Benefits?
- Purple
- Aug 25
- 3 min read
Most people don’t think their bank could put their disability benefits at risk. But for millions who rely on SSI, SSDI, or backpay, that’s exactly what’s happening.
Traditional banks were never designed with SSA rules in mind. That means something as simple as keeping too much in your account—or having the wrong name on it—could lead to a benefit suspension, overpayment, or even a full loss of eligibility.
This article walks through:
How your bank account can trigger SSA red flags
Why rep payee and dedicated accounts need special setup
How to protect your benefits with better tools
1. SSI Has a $2,000 Limit—But Your Bank Doesn’t Warn You
If you receive Supplemental Security Income (SSI), you can’t have more than $2,000 in countable assets ($3,000 for couples). That includes the balance in your bank account.
Most banks:
Don’t flag when your balance is getting close to the limit
Let other benefit types (like child support or wages) pile up in the same account
Offer automatic savings features that push you over without notice
Even a few extra dollars could lead to a suspension or months of lost payments.
2. Your Account Title May Be Non-Compliant
If you’re a representative payee, SSA requires the account to be titled in a very specific way:
[Beneficiary’s Name] by [Your Name], Representative Payee
If your bank just opens a personal checking account in your name, it could violate SSA rules. And if the account is for dedicated backpay for a child, it must:
Be interest-bearing
Have restrictive use
Show proper titling for the minor
Most traditional banks don’t know these rules, which leaves caregivers, guardians, and families vulnerable.
3. Backpay and Benefits Get Mixed Together
SSA tracks where funds go—and how they’re used. But most families have just one bank account where:
SSI checks
SSDI backpay
Wages
Tax refunds
Child support
…all land together. Without clear documentation and account separation, this creates a compliance nightmare during audits or redeterminations.
4. You’re Left Alone During Reviews or Suspensions
When benefits stop, the clock starts ticking. You may need:
Bank statements
Spending records
Receipt history
Proof of rent or food costs
Traditional banks don’t help you pull this together—and certainly don’t understand SSA requirements. That’s where disability-first banking makes all the difference.
5. Purple Is Built to Help You Keep Your Benefits
Purple exists because mainstream banks don’t work for our community. We help:
Track balances against the $2,000 SSI limit
Keep funds separated across rep payee and dedicated accounts
Store SSA letters, receipts, and payment memos in a secure Vault
Flag risky deposits that could trigger a suspension
Offer early direct deposit so you’re not stuck waiting
If you’ve ever lost a benefit—and didn’t know why—it may be your bank.
Purple is a financial technology company, not a bank. Banking services are 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.