ElderWeb

The Social Security Administration (SSA) has created a special web site to help consumers and providers set up and use electronic transfer accounts (ETAs). ETAs are low-cost bank, credit union, or savings and loan accounts set up specifically so that consumers who don't have another bank account can still take advantage of electronic deposits of Social Security and other federal payments. The need for this service grew out of the fact that many recipients of Social Security and other payments have insufficient income to set up and maintain ordinary checking accounts. Without bank accounts, direct deposit of payments is not possible. Since mailed checks could be lost or stolen and some recipients were paying significant fees to convert their checks into cash each month, this created unnecessary hardships for this audience.

An ETA provider is required to open an ETA for any recipient of a Federal benefit, wage, salary or retirement payment regardless of credit history, unless the financial institution is aware that the individual previously held an ETA that was closed because of fraud at any financial institution, or the institution previously closed an ETA held by the individual at that institution because of fraud or misuse. ETA providers guarantee that monthly charges for ETA accounts will not exceed $3 a month, and they must allow their ETA customers a minimum of four free withdrawals per month. ETA accounts do not have check-writing privileges, but may provide for ATM withdrawals.