How Do I Change My Disability Direct Deposit Information?
The Social Security Administration stopped paying monthly disability and retirement benefits by check and switched to direct deposit over a decade ago. The application process for benefits through Supplemental Security Income, Social Security Disability Insurance, and retirement programs includes a request for direct deposit information.
The change came after years of complaints from people about lost or stolen checks. Social Security benefit checks always arrived on the same days of the month, so it was easy for thieves to know the best days of the month to hit mailboxes. Mandatory direct deposit did away with the problem of stolen or lost checks.
An issue that frequently arises has to do with people changing banks or credit unions. When that occurs, you need to change disability direct deposit information that you initially gave to the Social Security Administration. Here is an explanation of how to update direct deposit information and an alternative payment option for those of you who do not want to maintain an account at a bank or credit union just to receive your disability benefits or other benefit payments each month.
Government Programs Making Monthly Benefit Payments
About 54 million retired workers receive monthly benefit payments from the Social Security Administration. Another 7.2 million workers who can no longer work because of a disability receive SSDI benefits. The SSI program pays benefits to 7.4 million adults and children, many of whom qualify because they are blind or disabled.
Eligibility for the SSDI program depends on your work history. You must have worked long enough at jobs or self-employment and paid Social Security taxes on the income to be “insured.”
Being insured means receiving monthly retirement benefits when you reach full retirement age. If you become disabled and can no longer work because of your medical condition before retiring, you may be eligible for disability benefits through SSDI.
If you qualify for SSDI, you receive the equivalent of your retirement benefits at full retirement age. Monthly retirement and SSDI payments are calculated using a formula that includes your lifetime earnings.
There is no standard monthly SSDI benefit payment. Instead, you receive a payment based on your earnings, so someone who worked for a long time at a high-paying job would receive more each month than someone with a shorter work history or who worked at lower-paying jobs. Based on Social Security tax rates, the maximum amount a worker can receive each month in SSDI benefits The maximum amount that a worker may currently receive in benefits each month through SSDI is $3,822, but the average payment is only $1,537.
SSI differs from the SSDI program in being a needs-based program. The purpose of SSI monthly benefits is to help someone afford food, shelter, or other essentials. You don’t need a work history to be eligible for SSI, but you must have little or no income, and resources cannot exceed a total value of $2,000 for individuals and $3,000 for eligible couples.
Maximum federal benefits payments through SSI are $943 monthly to individuals and $1,415 to couples. The monthly benefit payments increase in 2025 to $967 for individuals and $1,450 for couples because of a cost-of-living adjustment.
The Switch To Electronic Payment Of Benefits
The Social Security Administration switched to mandatory electronic payment of benefits in 2011 to replace paper checks. When applying for SSDI, SSI, or Social Security retirement, you have two electronic payment methods to choose from:
- Direct deposit into an existing account at a financial institution.
- Electronic transfer onto a Direct Express debit card.
Direct deposit to a checking or savings account at a bank or credit union is the electronic payment method recommended by the Social Security Administration. Payments go directly to the financial institution you designate by electronic transfer. This eliminates the risk of a payment being lost or stolen, as frequently occurred with paper checks. The money goes directly to your account, where you can access it electronically using a computer, cellphone, or ATM or by writing a check or making a withdrawal from the account.
If you do not have an account at a financial institution or do not wish to open one, a Direct Express debit card is the other electronic payment option. Your monthly benefit payments are electronically transferred to the Debit Mastercard issued to you. Use it as you would any debit card to make purchases or withdraw funds up to the amount of the benefits deposited to it.
If receiving payments electronically through direct deposit to a bank account or a Direct Express debit card is a hardship, you may request a waiver from the U.S. Department of the Treasury. However, there are only three reasons for a waiver being granted:
- You have a mental impairment that prevents you from managing an account at a bank or credit union or managing a Direct Express debit card.
- You live in a remote location without infrastructure supporting electronic transactions with a financial institution, such as a credit union or bank.
- You were on May 1, 1921 or earlier.
Be aware that waivers are rarely granted and only after presenting documentation proving the existence of a hardship.
How To Change Disability Direct Deposit?
The direct deposit choice and bank information you provide when applying for Social Security benefits will be used to establish electronic payments once your application is approved. If you close a bank account and open a new one at the same financial institution or a new bank or credit union, the Social Security Administration needs to modify disability payment account information.
Your financial institution typically does not handle direct deposit update Social Security, so it becomes your responsibility. Failing to notify the Social Security Administration of a disability benefits bank change or the closing of an account and opening a new one at the same institution may cause a delay in receipt of your monthly benefit payments.
One way to change disability direct deposit information is online using a “My Social Security” account, but you must first set it up. It’s not difficult to do, but first, gather the following information needed to create your “My Social Security” account:
- Your Social Security number.
- The routing and account numbers of the new bank account.
- The name of the bank or credit union.
- Whether the benefit payments are going to a checking or savings account.
- The username and password you plan to use for your new “My Social Security” account.
Go to the Social Security website, click the “Create an Account” tab, and follow the instructions to create a “My Social Security” account where you can see your current direct deposit information and make a disability benefits bank change. Some banks or credit unions will help their customers through the process of notifying Social Security to modify disability payment account information, but you must be present at the bank for them to do it.
You can call the Social Security Administration directly at 1-800-772-1213 for additional information and help with changing direct deposit information. The phone number for questions about or to sign up for a Direct Express debit card is 1-800-333-1795. You also can visit a local Social Security office for assistance.
Another option for guidance and information about direct deposit options is the Electronic Payment Solution Center at the U.S. Treasury at 1-800-333-1795. The number at the Treasury to request a hardship waiver to the electronic payment requirement is 1-855-290-1545.
If you currently receive disability or other Social Security benefits through direct deposit or a Direct Express debit card, it takes time for the changes you request to be processed. Do not close the bank account where funds are now deposited until the benefit payment appears in the new account. This avoids delays caused by benefits directed to a closed account.
When To Expect Electronic Payments To An Account Or Debit Card?
The Social Security Administration follows a schedule for payment of monthly benefits. SSI benefits are paid on the first day of each month. Social Security retirement and SSDI benefits are paid on a Wednesday according to a beneficiary’s birthday as follows:
- Second Wednesday of the month for those born on the first through 10th day of the month.
- Third Wednesday of the month for those born on the 11th through the 20th day of the month.
- Fourth Wednesday of the month for those born on the 21st through the 31st day of the month.
If a payment date falls on a weekend or federal holiday, it is processed on the immediately preceding business day.
Some people qualify for benefits through SSDI and SSI at the same time. Their SSI payment is processed on the first day of the month. Their SSDI benefits are paid on the third day of the month, regardless of their date of birth. The rules about federal holidays and weekends also apply.
Rely On Clauson Law For Help With Your Disability Benefits
Whether you have questions about direct deposit, need assistance with an application, or want representation to appeal a denial of disability benefits, the caring professionals at the Clauson Law Firm are here to help. Contact us today for a free consultation.
