WASHINGTON–In June the U.S. Department of Treasury announced a milestone in the push for direct deposit of Social Security and SSI checks.
Since the "Go Direct" campaign was launched in 2005, a million more people have signed up for direct deposit. Credit unions earned praise for their efforts.
"Credit unions have been some of our most robust partners," said Alvina McHale, Treasury's Go Direct spokesperson. McHale also indicated credit unions may be in a good position to talk to sponsor employers and Select Employer Groups included in fields-of-membership about direct deposit of paychecks.
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That will not only bring more money into credit unions on a low-cost, electronic basis, but also position the baby boom generation to move seamlessly into Social Security direct deposit. Treasury officials were surprised when research showed boomers are less likely than current Social Security recipients to elect direct deposit. The number one reason appeared to be that boomer employers are less apt to offer direct deposit of paychecks.
Currently 19.38% of recipients — almost 11 million people — still insist on receiving paper checks. Each paper check costs 80 cents more than the direct deposit alternative.
In 2008, Treasury expects to expand a debit card program called "Direct Express," piloted in Illinois.
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