I’m a Bank Teller: 7 Best Banking Tips If You Will Be On Social Security in 2024
If you’ll be joining the more than 71 million people already receiving their Social Security benefits in 2024, there are some important banking tips that will help you stay ahead of any problems.
Banking should be fairly straightforward, but with online banking becoming more common, it’s changed the way we handle everything, from bill paying to investing.
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Kimberlie McGee, head teller and team lead of the Eustis, Florida branch of Addition Financial, explained how to best stay on top of your banking if you’ll be on Social Security this year.
Have These Basic Accounts
If you only have a checking account, McGee said, “Always have a savings and a checking account, so you can keep funds separated.”
If you have enough funds, you can consider other financial accounts or products, like a high-yield savings account or even CDs to grow your money, she said.
Also, since many people taking Social Security benefits are on a limited or fixed income, be sure to choose banks that offer free accounts. There’s no need to pay extra fees when you don’t need to, McGee added.
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Know When You Can Access Your Funds
McGee stressed that it’s important to know if your bank holds any Social Security funds that are directly deposited or if they make them available immediately.
“A lot of institutions will hold the funds until the 3rd [of the month] before they release them,” she said. It’s one of the things she’s proud of about Addition. “We don’t hold your funds. Anytime the IRS sends us the funds, we immediately put it in their account.”
Find the Best Method That Works for You
Though online banking is now easier than ever, not everyone is comfortable using it, McGee said.
“Depending on the age, the younger generations are constantly swiping their cards and not keeping track, but the older generations are pulling out cash. It’s good to have a little bit of both,” she said.
Most banks will walk you through how to set up online banking, but McGee believes in the “old fashioned” method of maintaining a bank account register.
If you create an online account, make sure you either pick a password you remember or write it down for safekeeping, she urged.
“Just keep an eye on what you’re spending,” she said. She’s a fan of using cash at times, as well as debit and credit.
Always Monitor Your Account
Regardless of whether you’re using online banking or banking the old fashioned way, McGee said, “Make sure you are monitoring your account. A lot of people on Social Security have trouble using online banking, but it’s good to keep track, because a lot of merchants don’t pull the funds right away, which can be confusing if you’re not paying attention.”
Automate What You Can
If you’re comfortable enough with online banking, she said it’s a good idea to automate what you can, such as bill pay and putting money into your savings account.
“Setting up automatic payments for your bills is good, because you know the bills are paid. But keep an eye on your funds, because you want to make sure the item gets paid or is not coming out at a different time and throwing you off,” she said.
People on Social Security may not have a ton to save, but if you do, automating that makes sure it gets put away each check, she said.
Protect Against Fraud
Social Security is notoriously susceptible to fraud, which is why the IRS will be doing away with paper checks, McGee said. She urged, “Don’t give out your Social Security number to anyone. If someone calls saying they’re from your bank — hang up and call the bank back to double check.”
Also, be careful about where you pay with a debit card, such as gas stations, which are prone to hacking.
“I typically suggest to my members to get a credit card, which protects your funds,” she said. “I use my credit card first, and then, what I would have spent, I transfer from my debit card.”
Because credit card companies protect your spending against fraud, if you do get hacked, the criminals don’t get access to your actual savings or checking account.
She said, “It takes sometimes seven to 10 business days to do an investigation and put the funds back in the account, and people on Social Security need every dime.”
Designate a Cosigner and Beneficiary
McGee also recommended you put someone you trust on your account with you, such as a child or family member who can help monitor your accounts.
“We can’t disclose anything to people who aren’t on the account,” she said. “Also, have a beneficiary on the account in case something happens.”
You never know when you might be indisposed but need access to your funds.
With these simple strategies, people on Social Security can be sure to keep their funds safe and their banking hassle free.
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This article originally appeared on GOBankingRates.com: I’m a Bank Teller: 7 Best Banking Tips If You Will Be On Social Security in 2024