Social Security payments to be made electronically

Posted on Jun 17, 2010

The days of Social Security checks arriving in the mail will soon come to an end. The U.S. Treasury Department announced Wednesday that all payments from the U.S. government will now be made electronically. This includes all Social Security checks and other forms of supplemental income including railroad retirement and veterans' benefits.

Money will now be received through direct deposit into a bank account or through a direct debit card issued by the Treasury Department. It is estimated that the discontinuing of paper checks will save the government $48 million in postage and an additional $303 million over the next five years.

There is concern that seniors who are not used to online banking or are accustomed to their checks coming in the mail will have a difficult time making the transition. There will be a time of adjustment for Social Security recipients and they will also receive notifications when their deposits have been made.