Treasury Department will phase out Social Security paper checks

May 5, 2011

The Chicago Sun-Times reports that the Treasury Department will start phasing out paper checks.

The Treasury has started to send notices to individuals that receive checks from Social Security. The notice states that if you are currently receiving checks, you have until March 1, 2013 to switch to direct deposit. The Treasury Department expects to save $1 billion dollars over 10 years.

Additionally, all new Social Security applications must receive their benefits check through direct deposit. The Treasury Department says this will also be more secure.

Many people already receive their checks through direct deposit, but 11 million people still receive paper checks. If you wish not to get your checks direct deposited into a banking account, you can get your money deposited into a debit card that the Treasury Department has made for this purpose.