As seniors, we are all concerned about making our pennies go as far as possible. 

My husband, Dick, and I live everyday by this credo:   “A penny saved is a penny earned”.  Everyone wants that Social Security check to stretch, so why fall into the Government’s Debit Card offer, that is going to cost you pennies galore?  Here are my thoughts on the subject.  Then you can relax by watching the little video I’ve included at the end.

By summer of 2008, the Government is going to offer seniors and others who receive Social Security, the opportunity to have your monthly stipend automatically deposited into a Debit Card, instead of sending your S.S. through the mail or having it automatically credited into your bank account.  This is being touted as a faster and safer way to deliver funds over mailing paper checks.  (In my opinion, auto deposit into a free checking account is hard to beat.)

A debit card – Sounds sort of an easy way to process your SS, doesn’t it? 

Anyone choosing this option will receive a MasterCard debit card and a personal identification number (PIN).  Each month, this MasterCard will have your S.S. benefits deposited into it.

As of this writing, you will be able to use ATMs to withdraw cash with this card, and use the card at retailers for purchases – much as any debit or credit card.

However, realize this:

·         Paper account statements, will cost you 75 cents each.

·         Online bill-paying service will cost you 50 cents per bill.

·         The first ATM withdrawal each month is free – there after, each withdrawal will cost you 90 cents each.

·         Plus, some ATMs may access their own usage fee.

·         International ATM withdrawals are going to cost you $3 each, plus a 3 percent currency conversion fee.

There is a high risk of loss if your debit card is lost or stolen.  Debit cards usually do not carry the same protection as a credit card does.  You need to check this out.

Balance these facts (and the nickel and diming you to death with fees) against getting a check and then having to go to the bank to cash that check – possible cashier’s fees (our bank charges none), or just having your $’s deposited into a free “Senior’s”-type checking account (they usually have free ATM service connected with them), and you’ll probably end up with just what we have – automatic deposit.