When you're approved for SSI or SSDI benefits, one of the first decisions you'll make is where to receive your payments. The right choice can save you money, protect your benefits, and make life easier.
In this article, we'll cover:
- Your main options for receiving benefits
- Traditional banks: pros and cons
- Direct Express: what to know
- Disability-first accounts like Purple
- How to make the switch
1. Your Main Options for Receiving Benefits
When setting up direct deposit for SSI or SSDI, you have several choices:
- Traditional banks (Chase, Bank of America, Wells Fargo, etc.)
- Credit unions
- Direct Express (the government's prepaid card program)
- Online banks (Chime, Current, etc.)
- Disability-focused accounts (Purple)
Each option has trade-offs. The best choice depends on your specific needs.
2. Traditional Banks: Pros and Cons
Pros:
- Physical branches for in-person help
- Familiar brand names
- Full banking services (loans, credit cards, etc.)
Cons:
- Monthly maintenance fees ($5-15+ per month)
- Minimum balance requirements
- No SSI limit tracking or alerts
- Overdraft fees up to $35 per transaction
- Not designed for disability benefits
Important: Traditional banks have no awareness of SSI's $2,000 resource limit. Their savings features could accidentally push you over and jeopardize your benefits.
3. Direct Express: What to Know
Direct Express is the Treasury Department's official prepaid card for federal benefits.
Pros:
- Free to receive benefits
- No credit check required
- Works at most ATMs and stores
Cons:
- Limited customer service (long hold times)
- No early direct deposit
- Account locks can happen without warning
- Limited transaction history access
- No ABLE account integration
- No spending controls for caregivers
Many people start with Direct Express but eventually switch to a better option.
4. Disability-First Accounts Like Purple
Purple was built specifically for people on SSI and SSDI.
What makes it different:
- Early direct deposit: Get your benefits up to 4 days sooner
- SSI limit tracking: Alerts when you approach $2,000
- ABLE account integration: Save beyond limits without losing benefits
- Rep payee support: Proper account titling and compliance tools
- No fees: No monthly fees, no overdraft fees
- Accessibility: Designed with disability needs in mind
5. How to Make the Switch
Switching your direct deposit is straightforward:
Step 1: Open your new account (takes minutes with Purple)
Step 2: Update your payment information with SSA:
- Online at ssa.gov/myaccount
- By calling 1-800-772-1213
- By submitting Form SSA-1199A
Step 3: Wait for confirmation (usually 1-2 payment cycles)
Step 4: Keep your old account open until the switch is complete
Important: Don't close your old account until you've confirmed your deposit has been redirected. This prevents any missed payments during the transition.