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Social Security & Medicare Questions Q: I've heard recently that the government will no longer send Social Security checks, and that to get our benefits, we will have to have a bank account for direct deposit. In my area the banks require a bigger minimum balance than the size of my check and the monthly fees can run $7 or more. I've been getting my check cashed by a relative for free. I can hardly get by on my Social Security check now and can't afford a lot of bank fees. What can I do? A: Although the government is strongly encouraging customers who receive payments or benefits such as Social Security to get bank accounts and switch to direct deposit, it is not mandatory. You will still be able to continue receiving paper checks. Direct deposit does offer many advantages. No one can steal your check out of your mail box. You don't have to carry your check to your relative for cashing. In the event the deposit doesn't appear when it should, it can usually be tracked within 24 hours, and you don't have to wait 10 days for a missing check to be replaced. On the other hand, direct deposit requires a bank account, and that can get expensive. The Treasury, however, is working with banks on establishing optional Electronic Transfer Accounts (ETAs) for Social Security beneficiaries. The accounts would be federally insured, require no minimum balance, and cost about $3 a month. Any bank, savings and loan, or credit union could offer them. Those who choose this option would get three or four free withdrawals each month, plus unlimited use (up to the balance in your account) of an ATM card at terminals in supermarkets and other stores. You would not be able to write checks, although the banks may offer checking at an additional fee. For more information about Social Security and Medicare, or to replace missing Social Security or Medicare cards, contact your local Social Security office or call toll free, (800) 772-1213. This article first appeared in Volume 4, Issue 8 of "The Social Security and Medicare Advisor" newsletter (September/1999). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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