Shelley EElectronic payments are in when it comes to Social Security benefits. To avoid fees when using your Social Security debit card, follow these tips.
Social Security beneficiaries used to get their funds via check. Now everything is digital. While you could get your funds deposited directly into your bank account, there’s another electronic option: The Social Security Direct Express Debit Mastercard.
Can this prepaid card make accessing your benefits more convenient? Sure, but as with any financial card, using it can come with a cost.
How To Minimize Your Social Security Debit Card Fees
Before we get into how to avoid fees with your Direct Express card, here are some costs you won’t have to worry about:
- Signup fees
- Overdraft fees
- Monthly fees
Now here’s how to get around the ones that can reduce your benefits:
1. Use in-network ATMs.
You can withdraw cash for free once a month using a network ATM or a bank teller window. You can also get some money back at no cost when checking out at stores like Walmart or Target. This is the best way to use the card, get cash out of it, and cut costs completely.
Use a non-network ATM, and you’ll face additional charges. To find in-network locations, go here.
2. Limit your withdrawals.
Even if the ATM is part of the Direct Express network, you only get that one free withdrawal per month. Any additional withdrawals, even if in the system, will cost 85 cents each.
Should you need to withdraw money more often, take a trip inside the bank or credit union to get the cash at no cost, as the ATM will result in a small charge for the convenience.
3. Shop with the card.
If a store accepts a debit Mastercard, you can use your Direct Express card to shop there. Most stores fall under this category, so you should be good to go.
By using the card to shop instead of making withdrawals, you can easily avoid any extra fees.
4. Skip paper statements.
Your Direct Express account information is available online or through the DX Direct Express app. Use those methods to check your balance and transaction history instead of a monthly paper statement in the mail, and you’ll save 75 cents.
5. Use your own bank account.
If you have a bank account, opt for the direct deposit option. By having your Social Security benefits sent to your account instead of the Direct Express card, you can avoid costly funds transfers.
Each time you transfer funds from your debit card to a U.S. bank account, it’ll set you back $1.50. Beyond avoiding that cost, having the money in your account gives you the flexibility of free withdrawals, accrued interest, etc.
6. Keep your card in a safe spot.
Losing your Social Security debit card comes with a cost. You can get one free replacement per year. After that, each new card will cost $4. Should you need overnight delivery, it’ll cost you an additional $13.50.
7. Use it in the U.S.
Many seniors like to travel once they’re retired and have loads of free time. If you do, keep your Direct Express card at home to avoid international fees.
Mark Luigi
