Veterans can receive benefit payments easier, safer, through direct deposit

Veterans who receive federal benefits should sign up for direct deposit to receive their benefit payments electronically.

Direct deposit is easier, safer and more reliable than prepaid debit cards or paper checks that often get lost or delayed in the mail. Direct deposit also allows beneficiaries to receive their benefits automatically, without leaving their home, which helps protect their health and safety by limiting unnecessary contact with others.

More than 98% of SSA and Veterans Benefits Administration (VBA) beneficiaries already receive their monthly benefit payment on time, every time, because they’ve enrolled in direct deposit.

To provide Veterans and service members with a safe, reliable and inexpensive way to receive their VA monetary benefits, VA launched the Veterans Benefits Banking Program (VBBP). Through VBBP, Veterans can access federally-insured banking institutions that specialize in services for military personnel, Veterans and their families. Participating VBBP banks offer Veterans and service members low- to no-cost checking accounts into which benefit payments can be direct deposited, as well as other financial services.

Since the program’s launch in December 2019, more than 30,000 Veterans have signed up for VBBP. Veterans can learn more about VBBP online, sign up by calling VA at 1-800-827-1000, or visit a participating bank or credit union and request to participate in the program.

Partnership

To streamline the process for disbursing funds to millions of Americans and ensuring timely receipt of benefit payments, VA and the Social Security Administration are joining forces with the U.S. Department of Treasury’s Bureau of the Fiscal Service. The agencies have teamed up to share ideas and explore new opportunities for collaboration that will improve the federal benefit experience.

VA and the Social Security Administration are connected by their shared commitment to serve the American public and to issue payments for federal benefits. From a retiree who receives Social Security benefits to a Veteran who receives disability compensation, monthly benefit payments are essential for millions of Americans. These payments provide beneficiaries with critical support needed to pay rent, buy food, purchase medicine, pay for school, and more. It is crucial that these payments are delivered on time, every time.

Joanne Gasparini is the associate commissioner of the Office of Financial Policy and Operations at the Social Security Administration.

Charles S. Tapp II is the chief financial officer at VBA.

Ronda Kent is the assistant commissioner for Payment Management and Chief Disbursing Officer at the Department of the Treasury’s Bureau of the Fiscal Service.