University of Missouri Extension

Direct Deposits and Uncle Sam

The federal government really wants you to get your social security, veterans benefits and railroad retirement checks by direct deposit. It's safer, cheaper and more efficient.

But the fed's can't make you accept electronic funds transfer if you don't want it. Seventy percent of social security recipients already receive their payments through direct deposit. And beginning January 2, 1999, all federal payments - except tax refunds- were supposed to be made by the government directly to your bank account.

But some seniors and politicians balked at the absolute mandate, and the government relented. If you are among the millions of beneficiaries who still subscribe to the "Check is in the mail" philosophy, you don't have to switch.

Source: Author unknown. (1998, December).  Retirement Watch. Kiplingers, 86.

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Last updated: March 09, 2005
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