BANK RATE
Beginning May 1, Social Security will require all new recipients to get their payments by either direct deposit to a bank account or via a debit card. Recipients who are already receiving Social Security have until May 1, 2013, to convert to one of these electronic delivery systems.
Cutting out paper checks and postal delivery is expected to save the agency $120 million in the first year and a total of $1 billion over 10 years, which is a good thing for taxpayers, especially people living in retirement.
Walt Henderson, director of EFT strategy division for the Treasury Department, says you can make the switch online or over the phone.
In either case, if you are choosing direct deposit, you'll need to know your bank's routing number and your account number. Generally, both are across the bottom of your checks with the routing number on the left and the check number on the right.