Highlighting the reliability, security and convenience of direct deposit, the U.S. Department of the Treasury and neighborhood senior citizen groups are telling anyone who doesn’t know about it, or still insists on receiving a paper check, to take advantage of the electronic payments.
Dubbed “Go Direct,” the nationwide campaign’s goal is to motivate seniors to use direct deposit for Social Security, Supplemental Security Income and other federal benefit payments.
“Direct Deposit ensures that your money is safe and accessible,” says Treasury fiscal assistant secretary Don Hammond. “The benefits of direct deposit become all too clear when routine services are disrupted in natural disasters and other events. Direct deposit offers people peace of mind and security.”
In addition to the personal benefits for recipients using direct deposit, there is also a wider financial benefit to the nation. An estimated $120 million of taxpayer money could be saved annually if the 13.3 million benefit checks – sent mostly to Social Security recipients – were converted to direct deposit. But despite education and marketing efforts encouraging the switch to electronic payments, the growth rate of direct deposit has slowed to one percent in recent years. That figure is particularly troubling with the fast-approaching wave of baby boomers set for retirement in 2008.
The Treasury Department is relying on local AARP chapters and other senior citizen groups to spread the word. Lake Highlands AARP president Patsy McPherson says she has been using direct deposit for years and suggests all seniors do the same.
“But apparently some don’t,” she says.
McPherson says some seniors take their checks to the grocery store, cash them and then buy all of their groceries and money orders for bills at the same time. But as seniors become older, transportation becomes a problem, and it may become harder to get out to cash the check.
And, of course, criminals can prey on seniors, raising the possibility that an entire month’s income could be lost.
“If there are seniors in the neighborhood, everyone knows it,” she says. “They’re just big targets.”
She’ll be getting the word out about the advantages of direct deposit in future meetings.
Rodger Mitchell coordinates the money management program for the Senior Source and says he has been counseling neighborhood seniors about the advantages of direct deposit for years.
“We’re very strong advocates of the direct deposit system,” he says.
So far the response has been positive, and he believes the “Go Direct” initiative will be a success.
“We’d like to have 95 percent of recipients in direct deposit, but that may not be possible. About 90 percent of the seniors who come for money management classes and other activities already understand and use direct deposit. It’s those who have been shut in and referred by Adult Protective Services who need to hear about it.”
