Waiting by the mailbox for a social security check is now a thing of the past. Since March, the federal government is requiring all social security recipients to have their monthly funds directly deposited into a checking or saving account. These electronic payments include veteran’s benefits, federal employee retirement checks along with both social security disability and retirement income.
Changing over from paper checks that are mailed out each month is estimated to save our government over one billion dollars over the next ten years. Treasury spokesman Walt Henderson said, “It costs us a little over a dollar to issue a paper check. It costs us 10 cents for an electronic payment.” If a person doesn’t have an account where these funds can be deposited, a debit card will be issued and monies loaded electronically onto the card each month.
In addition to the cost savings factor, the government believes monthly direct deposits will cut down on theft and fraud. Paper checks can easily be taken from a mailbox or cash stolen from an individual after the check is cashed. Direct deposit eliminates both of those concerns while still giving quick access to monthly funds.
Finally, electronic payments might just make monthly budgeting a bit easier. Bills can be paid on time since waiting on that check to be delivered is no longer a factor. And we all know how easy it is to spend a pocketful of cash vs having to write a check or swipe a debit card.
Photo: Money at CNN