Managing money for a family member on SSI can feel like walking a tightrope. One wrong move with their bank account, and they could lose their benefits. Yet thousands of families make the same avoidable mistakes every year.
In this article, we'll cover:
- The 3 most common SSI banking mistakes
- How each mistake puts benefits at risk
- Simple fixes for each problem
- How to bank safely on SSI
1. Mistake #1: Using a Joint Account
One of the most common—and most dangerous—mistakes is putting an SSI recipient on a joint bank account.
Why families do it:
- It seems easier to manage finances
- They want to help pay bills
- They don't know the SSA counts joint accounts
The problem: When an SSI recipient is on a joint account, the SSA may count the entire balance as their resource—even if most of the money belongs to someone else.
If that joint account has $5,000 from a parent's paycheck, the SSI recipient could be deemed over the $2,000 limit and lose benefits.
The fix: Keep the SSI recipient's funds in a separate account titled only in their name. If they need help managing money, consider becoming their representative payee instead of sharing an account.
2. Mistake #2: Ignoring Automatic Savings Features
Many banks aggressively push savings features. Round-ups, automatic transfers, and bonus interest sound helpful—but they can push an SSI recipient over the resource limit.
Why families fall for it:
- The bank markets it as "free money"
- They don't realize SSI has asset limits
- Small amounts seem harmless
The problem: Those $0.50 round-ups add up. That 4% savings account grows. Before you know it, the balance has crept past $2,000—and the SSA notices.
The fix:
- Turn off all automatic savings features
- Avoid high-yield savings accounts that encourage balance growth
- Use an account like Purple that's designed to keep you under limits
3. Mistake #3: Not Tracking the First-of-Month Balance
The SSA checks resources on the first of each month. Many families don't realize that a temporary spike—even for one day—can trigger problems.
Why families miss this:
- They focus on average balance, not specific dates
- They don't know when SSA checks
- They assume brief overages don't count
The problem: If rent is due on the 3rd and benefits arrive on the 1st, the balance on the 1st could be higher than $2,000. That one-day overage can result in an overpayment notice or benefit suspension.
The fix:
- Schedule bill payments before the 1st when possible
- Monitor balances closely at month's end
- Use Purple's balance alerts to warn you before you hit the limit
Important: The SSA can request bank statements at any time. They specifically look at balances on the first of each month.
4. How to Bank Safely on SSI
Here's a checklist for SSI-friendly banking:
- Use a single-owner account (not joint)
- Disable automatic savings features
- Monitor first-of-month balances
- Set up alerts at $1,800 or $1,900
- Consider an ABLE account for savings above $2,000
- Keep good records for SSA reporting
- Use a disability-focused account designed for SSI rules
Purple was built specifically for people on SSI. We understand the rules and designed our features to help you stay compliant.