The $5.8 billion, 242,000-member San Diego County Credit Union said it is preparing for a new influx of direct deposit business as federal benefits by paper check comes to an end.
The Treasury Department has been in the process of phasing out paper payments and requiring electronic deposits of Social Security checks and other federal benefits, and the switch now must be made by March 1, SDCCU noted.
Benefit recipients can choose to get their payments by direct deposit to a bank or credit union account or to a MasterCard debit account.
“We look forward to welcoming a new influx of direct deposit savers,” said Teresa Halleck, SDCCU president/CEO.
“Receiving your Social Security or other supplemental income payments by direct deposit is safe and reliable. Recipients will not have to worry about a check being lost or stolen, and the money is available immediately on your payment date. There will no longer be a need to wait for the mail to arrive," Halleck said.
Ending paper Social Security checks is expected to save about $120 million annually, along with environmental benefits.