People often use "SSDI" and "SSI" interchangeably, but they're actually two very different programs with different eligibility rules, payment amounts, and financial implications. If you or someone you love receives disability benefits—or is applying for them—understanding the difference can help you make better financial decisions and avoid costly mistakes.
In this article, we'll cover:
- What SSDI is and how it works
- What SSI is and how it works
- The key differences between the two programs
- Whether you can receive both SSDI and SSI at the same time
- How each program affects your access to health insurance
- What the different rules mean for your banking and finances
What Is SSDI?
Social Security Disability Insurance (SSDI) is a federal insurance program funded through payroll taxes. When you work and pay Social Security taxes (FICA), you earn "work credits." In 2026, you earn one credit for every $1,890 in earnings, up to a maximum of four credits per year. To qualify for SSDI, most adults need 40 credits total, with 20 earned in the last 10 years before becoming disabled.
SSDI is not a needs-based program. This means your income, savings, and other assets do not affect your eligibility or your payment amount. Your SSDI benefit is calculated based on your lifetime earnings record—specifically, your average indexed monthly earnings. In 2026, the average SSDI payment is approximately $1,630 per month, though payments can range much lower or as high as $4,152 per month depending on your earnings history.
Once approved, SSDI recipients must wait five months before payments begin. After receiving SSDI for 24 months, you automatically qualify for Medicare, regardless of your age.
What Is SSI?
Supplemental Security Income (SSI) is a needs-based program funded through general tax revenue—not payroll taxes. SSI is designed to provide a financial floor for people who are aged (65+), blind, or disabled and who have very limited income and resources. Unlike SSDI, SSI has no work history requirement, which makes it an important safety net for people who became disabled before building a work history, including children.
Because SSI is needs-based, it comes with strict financial limits. In 2026, the resource limit is $2,000 for an individual and $3,000 for a couple. Your countable resources—bank accounts, cash, investments—must stay below these thresholds to maintain eligibility. The maximum federal SSI payment in 2026 is $994 per month for an individual and $1,491 per month for a couple, though many states add a small supplement.
SSI recipients automatically qualify for Medicaid in most states, and in many states also qualify for SNAP (food stamp) benefits.
Key Differences at a Glance
The most fundamental difference is that SSDI is based on your work history while SSI is based on your financial need. This single distinction drives nearly every other difference between the programs.
SSDI has no resource limit—you can have savings, investments, and multiple bank accounts without affecting your benefits. SSI's $2,000 resource limit means recipients must carefully monitor their finances every single month. SSDI payments vary based on your earnings record and can be substantially higher, while SSI payments are capped at the federal maximum regardless of your prior earnings.
The health insurance connection is also different. SSDI leads to Medicare after a 24-month waiting period, while SSI leads to Medicaid (in most states, immediately upon approval). Some people find that Medicaid actually provides more comprehensive coverage, particularly for long-term care services, home health aides, and other supports that Medicare may not cover as robustly.
Can You Receive Both SSDI and SSI?
Yes—some people qualify for both programs simultaneously, a situation commonly called "concurrent benefits." This typically happens when someone has enough work history to qualify for SSDI, but their SSDI payment is low enough that they also meet SSI's income requirements.
Here's how it works: if your SSDI payment is below the SSI maximum of $994 per month, SSI may supplement your income to bring you up to that level (minus a small income exclusion). So if your SSDI payment is $600, SSI might add approximately $374 to bring your total closer to the SSI maximum.
People receiving concurrent benefits need to be especially careful because they're subject to SSI's resource limit. Even though their SSDI payment has no resource limit on its own, the fact that they also receive SSI means the $2,000 limit applies to their total countable resources.
What This Means for Your Banking and Finances
If you receive only SSDI, your financial life is relatively straightforward from a benefits compliance perspective. You can save money, maintain multiple accounts, and build assets without worrying about losing your benefits. Your main financial consideration is understanding how earned income above the Substantial Gainful Activity (SGA) limit of $1,690 per month (or $2,830 for blind individuals) could affect your benefits if you return to work.
If you receive SSI—whether alone or alongside SSDI—financial management requires much more attention. Every dollar in your bank account matters, and timing of spending and deposits can make the difference between keeping and losing your benefits. Tools that help you monitor your resource levels in real time become not just helpful but essential.
This is one of the reasons why choosing the right bank account matters. A general-purpose checking account doesn't know or care about Social Security's rules. An account built for disability benefit recipients can help you stay on top of what matters most.
Whether you receive SSDI, SSI, or both, your bank account should work for your situation. Purple offers checking accounts designed specifically for disability benefit recipients, with tools that help SSI recipients track resources and stay compliant.