Your Benefits Might Be Canceled for a Simple Bank Error — Here’s How to Prevent It

You’ve done everything right. You qualified for SSI or SSDI, submitted your paperwork, and set up direct deposit. But then—out of nowhere—your benefits stop showing up.

No notice. No explanation. Just a missing payment when you need it most.

This happens more often than you’d think. And in many cases, it’s because of a tiny banking error most people never see coming.

How a Simple Mistake Can Cost You Everything

Here are a few common issues that have caused people to lose their benefits—temporarily or permanently:

• Mismatched names between your SSA file and your bank account (e.g. middle initial vs. full name)

• Incorrect routing or account numbers entered during setup

• Deposits rejected by your bank for security or account issues

• Closed or inactive accounts you forgot to update with SSA

These mistakes can lead to SSA suspending your payments, flagging your account for review, or sending your money back to the Treasury.

And once that happens, it’s a bureaucratic nightmare to fix.

The SSA Doesn’t Make It Easy to Recover

If your payment is rejected or returned, here’s what usually happens:

• SSA mails a notice (which may take weeks)

• You have to call or visit your local SSA office

• You may be asked to reverify your bank account or identity

• In the meantime, you’re not getting paid

For many people living on fixed income, even one missed deposit means late rent, missed prescriptions, and serious stress.

How to Protect Yourself

Avoiding these errors starts with having full visibility and control over your direct deposit setup.

Here’s what helps:

• Use a bank account with your legal name exactly as it appears on your SSA records

• Double-check your routing and account numbers during setup

• Make sure the account stays active and in good standing

• Set up alerts to know when deposits are expected or delayed

• Have easy access to customer support in case something goes wrong

How Purple Helps

Purple was built with all of this in mind. With Purple, you can:

• Set up direct deposit in minutes, using your legal name and verified info

• Get notified when SSA or employer deposits are expected

• Monitor your balance in real time to catch issues early

• Receive Social Security disability benefits, which may arrive up to 4 days early¹

• Get other direct deposits, like paychecks, which may arrive up to 2 days early¹

Get started today at withpurple.com

Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC. The Purple Mastercard® Debit Card is issued by OMB Bank, Member FDIC, pursuant to license from Mastercard.

¹ Early access is not guaranteed, depends on payer timing, and standard processing times may apply. We generally make funds available on the day we receive the payment file, which may be up to 4 days early for government benefits like SSI or SSDI, and up to 2 days early for other deposits. Early access is available at no additional cost.