Managing money when you receive disability benefits isn't as simple as opening a checking account and going about your day. There are rules—some obvious, some hidden—that can affect your benefits if you're not careful. Most banks don't even know these rules exist.
In this article, we'll cover:
- The asset limits most people don't know about
- How "countable resources" work
- Account titling rules for rep payees
- Why traditional banks often fall short
- Hidden fees that hurt benefits recipients most
- How Purple is built around these rules
1. Asset Limits That Can Cost You
If you receive Supplemental Security Income (SSI), you're subject to strict asset limits:
- $2,000 for individuals
- $3,000 for couples
Go over these limits, even briefly, and you risk losing your benefits. This means a birthday gift, a small inheritance, or even saving too much for an emergency could put your SSI at risk.
Important: These limits apply to "countable resources," which includes money in most bank accounts. One mistake at the end of the month could trigger a review of your benefits.
2. What Counts as a "Countable Resource"
Not everything counts toward the asset limit, but bank account balances usually do. Here's a quick breakdown:
Counts toward the limit:
- Checking account balances
- Savings account balances
- Cash on hand
- Stocks and bonds
Doesn't count:
- Your primary home
- One vehicle
- Household goods and personal effects
- Burial plots and some burial funds
- ABLE account balances (up to $100,000 for SSI purposes)
The tricky part? Your bank won't track this for you. If you accidentally save too much, you might not realize it until the SSA contacts you about an overpayment.
3. Rep Payee Account Titling Rules
If you're a representative payee managing benefits for someone else, there are specific rules about how accounts must be titled:
- The account must clearly identify you as the payee and the beneficiary by name
- Funds must be kept separate from your personal accounts
- You must be able to account for how every dollar is spent
Most banks don't automatically set up accounts this way. You have to know to ask for it—and hope the banker understands what you need.
Important: An improperly titled rep payee account can cause problems during your annual accounting to the SSA. Always verify the account title matches SSA requirements.
4. Why Traditional Banks Fall Short
Traditional banks are built for the general population, not for people navigating the complexities of disability benefits. Common problems include:
- No asset tracking: Banks don't warn you when you're approaching SSI limits
- Confusing statements: Hard to see at a glance what's benefit money vs. other income
- Rep payee confusion: Many bankers have never set up a rep payee account before
- Accessibility barriers: Apps and websites that don't work well with screen readers or other assistive technology
- Lack of training: Customer service reps who don't understand benefits rules
These gaps aren't intentional, but they create real problems for people who can't afford mistakes.
5. Hidden Fees That Hit Harder
Fees affect everyone, but they hit benefits recipients especially hard:
- Overdraft fees: When you're living on a fixed income, one overdraft can cascade into multiple fees
- Minimum balance fees: Punishing you for not having enough money
- ATM fees: Paying $3-5 just to access your own money
- Paper statement fees: Charging extra for accessibility needs
When your income is fixed and limited, every dollar matters. Fees that seem small to others can be devastating when you're counting every penny.
6. How Purple Is Built Around These Rules
Purple was created specifically for people navigating disability benefits. We understand the rules because we built our service around them:
- Asset awareness: Tools to help you track your balance against SSI limits
- Clear fund separation: Easily see what's benefit money and what isn't
- Proper rep payee setup: Accounts titled correctly from the start
- Built-in reporting: Generate spending reports for SSA accounting
- No hidden fees: Your benefits stay intact
- Accessible design: Built with input from the disability community
Important: Most banks see these rules as edge cases. At Purple, they're the foundation of everything we build.
Banking shouldn't require you to be an expert in SSA regulations. You should be able to manage your money without worrying about accidentally losing your benefits.
Purple handles the complexity so you don't have to. If you're tired of banking that wasn't built for you, see how Purple makes managing disability benefits simpler and safer.