New Debit Card for Social Security Reciipients Without Bank Accounts

Sep 05, 2008 by Elizabeth Ziegler

(KCPW News) Thousands of social security recipients in the Salt Lake Valley don't have bank accounts. Now they're eligible for a free debit card, funded each month by their social security payment. Phillip Belisle with the U.S. Treasury Department says the new Direct Express cards will save taxpayers money.

"We estimate we mail about 27,000 social security and SSI checks into the Salt Lake area every month," Belisle says. "And if we convert every one of them to the Direct Express Card, we could save over $281,000 a year, just in the Salt Lake City area alone."

Nationwide, if the 4 million people receiving paper checks signed up for the program, the department would save $40 million each year. However, Belisle says it isn't just a cost-saving measure; the treasury thinks it's safer.

"What we want to emphasize is by using electronics, particularly the Direct Express card, people get the safety of not having to worry about lost, stolen or misdirected checks, and the ease of use. More and more people are using debit cards for all kinds of personal financial transactions. And they're very reliable," Belisle says.

The cards will work just like a regular debit card everywhere that accepts MasterCard. However, recipients can only withdraw cash from an ATM once a month without a fee. Click here for more information.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW