The Veterans Benefit Banking Program has converted 250,000 Veterans and their beneficiaries to direct deposit

Remember those days when you had to wait for your check to be handed out at your job, or for it to be delivered via the mail? If so, you know it was a long, cumbersome process that many of us are glad we no longer must deal with.

Well, thanks to the establishment of VA’s Veterans Benefits Banking Program (VBBP), more than 250,000 Veterans and their beneficiaries have joined VBBP and no longer have to wait. The program was established in 2019 to create bank accounts, convert paper checks to direct deposit, and allow recipients to receive their benefits payments through electronic funds transfers (EFT) quickly and safely.

VBBP benefits also now apply to VA-approved caregivers in addition to Veterans and their beneficiaries. In fact, VA recently updated its mission statement to include caregivers: “To fulfill President Lincoln’s promise to care for those who have served in our nation’s military and for their families, caregivers, and survivors.”

There are 71 financial institutions participating in VBBP—this includes 17 banks and 54 credit unions. VA started VBBP with the nonprofit Association of Military Banks of America (AMBA), helping connect Veterans with participating banks or credit unions that understand your financial needs. AMBA continues to recruit new financial institutions at a record pace, and their collaboration with VA keeps VBBP growing.

Free credit counseling from the National Foundation for Credit Counseling (NFCC) and free financial counseling through the Association for Financial Counseling & Planning Education® (AFCPE®) are also available through VBBP. These counselors work with Veterans, beneficiaries, caregivers and family members to develop customized plans to meet their unique goals and needs.

VA mailed letters about the free counseling to nearly 2.5 million Veterans and beneficiaries between August 2022 and May 2023 to spread the word.

The program also sponsors VetCents, a financial education program that covers topics like budgeting, and is specifically designed for Veterans and their families. The Veterans Saves program was also created to help Veterans build financial resilience, save, plan and budget for the future.

For more information

VBBP helps Veterans take an important step toward protecting their VA benefits. If you, or someone you know, are eligible for VA benefits and would like to learn more about VBBP, please visit the Veterans Banking website or VA’s banking information website.