U.S. Treasury and Federal Reserve Bank Promote Social Security Direct Deposit

Gov. Rick Perry proclaims February 'Go Direct' Month

AUSTIN, February 1, 2005 -- In support of the U.S. Department of the Treasury and the Federal Reserve Bank's efforts to promote direct deposit of Social Security and other federal benefits, Gov. Rick Perry has proclaimed February Go Direct month in Texas. During the month, the U.S. Department of the Treasury and the Federal Reserve Bank will co-sponsor events with elected officials, local non-profit organizations, and banks and credit unions, to encourage people who receive Social Security, Supplemental Security Income (SSI) and other federal benefits to enroll in direct deposit, which is safer, easier, and more convenient than paper checks.

Go Direct Month marks the official launch of the Go Direct campaign in Texas, which will feature a variety of programs and activities in Austin, Dallas, Houston and San Antonio.

"Texans can benefit from the convenience of having money directly deposited to their bank accounts, the certainty of timely deposits and reduction of overall risk from theft," Gov. Perry said. "I encourage all Texans to learn more about direct deposit and to switch to it."

For Americans who receive federal benefits, direct deposit is the best way to get their payments. It's easier and more convenient than checks, eliminates the risk of lost or stolen checks and fraud, and gives people more control over their money, because the payment goes straight into a bank account. Through cooperation with local banks and credit unions, social service agencies, and community and faith-based organizations, the Go Direct campaign informs people about the advantages of using direct deposit and makes it easier for them to switch to electronic payments.

"Treasury appreciates the support of Governor Perry in the Go Direct campaign," said Don Hammond, Fiscal Assistant Secretary at Treasury. "Certainly, electronic payments are superior to checks in terms of ease, safety and convenience. Research shows that the people who receive checks are often those who would benefit most from direct deposit."

Direct deposit also saves taxpayers millions of dollars. Each benefit check costs 62 cents more to issue than direct deposit. Each year the federal government mails out more than 6.9 million Social Security checks in Texas and nearly 160 million nationwide. Converting payments to direct deposit would save nearly $100 million annually.

Austin, Dallas, Houston and San Antonio are among 10 markets chosen for the Go Direct pilot campaign, which also includes cities in Illinois and Tennessee, and all of Puerto Rico.

For more information on the upcoming events for Go Direct Month, the Go Direct campaign, or to arrange an interview with any of the organizations involved, call Matt Motley at (972) 830-2815. Or contact Alvina McHale, U.S. Department of the Treasury, Financial Management Service, at (202) 874-6604.

Go Direct has established websites in English and Spanish, www.GoDirect.org, and www.DirectoASuCuenta.org, and toll-free numbers to help people sign up for direct deposit: (800) 333-1795 (English) and (800) 333-1792 (Spanish).