Purple vs Traditional Banks: The Definitive Disability Banking Showdown

Choosing the right bank when you're on disability benefits isn't just about convenience—it's about protecting your income. Traditional banks weren't built with SSI and SSDI recipients in mind, and that gap can cost you.

In this article, we'll cover:

1. Why traditional banks fall short for disability recipients
2. Key features to compare
3. How Purple stacks up against big banks
4. The real cost of using the wrong bank
5. Making the switch

1. Why Traditional Banks Fall Short

Traditional banks are designed for one thing: getting people to save and spend more. That's great for most customers—but it creates real problems for SSI recipients who must stay below $2,000 in resources.

Common issues with traditional banks:

• No SSI limit awareness: They don't track or alert you when approaching the $2,000 threshold
• Automatic savings features: Round-ups and auto-transfers can push you over limits
• Fee structures: Overdraft fees, maintenance fees, and minimum balance requirements
• Limited accessibility: Branches and support not designed for disability needs
• No ABLE integration: You're on your own managing tax-advantaged savings

2. Key Features to Compare

When evaluating banks as a disability benefit recipient, consider:

| Feature | Traditional Banks | Purple | |---------|------------------|--------| | SSI limit tracking | No | Yes | | Balance alerts at $2,000 | No | Yes | | Early direct deposit | Rarely | Up to 4 days | | ABLE account integration | No | Yes | | Rep payee support | Limited | Built-in | | Monthly fees | Often $5-15+ | $0 | | Overdraft fees | $25-35+ | $0 | | Disability-focused support | No | Yes |

3. How Purple Stacks Up

Purple was purpose-built for people on SSI, SSDI, and other disability benefits. Here's what that means:

Resource limit protection:

• Real-time balance tracking
• Alerts when you approach the SSI limit
• Clear visibility into countable resources

Faster access to benefits:

• Early direct deposit up to 4 days sooner
• No holds on government deposits
• Instant notifications when money arrives

Integrated savings:

• ABLE account connection
• Save beyond $2,000 without losing benefits
• Track spending across accounts

Caregiver and rep payee tools:

• Proper account titling for compliance
• Spending controls and oversight
• Easy reporting for SSA requirements

Zero fees:

• No monthly maintenance fees
• No overdraft fees
• No minimum balance requirements

4. The Real Cost of Using the Wrong Bank

Using a traditional bank when you're on SSI can be expensive:

• Benefit suspension: Going over $2,000 can stop your payments
• Overpayment notices: You may owe money back to SSA
• Bank fees: The average American pays $250+/year in bank fees
• Stress and time: Manually tracking limits and worrying about compliance

One overpayment notice can cost you thousands of dollars and months of stress trying to resolve it.

5. Making the Switch to Purple

Switching from a traditional bank to Purple is straightforward:

1. Open your Purple account online in minutes
2. Update your direct deposit with SSA at ssa.gov or by calling 1-800-772-1213
3. Link your ABLE account if you have one
4. Set up alerts for balance thresholds
5. Close your old account once deposits have switched over

Important: Keep your old account open until you've confirmed your first deposit arrives in Purple to avoid any payment gaps.