What is the purpose of a federal direct deposit form?


Quick Answer

The purpose of federal direct deposit forms is to enable recipients of federal funds to sign up to receive payments via direct deposit to bank accounts or DirectExpress debit cards. There are different federal direct deposit forms for vendors, federal employees and those receiving federal benefits payments.

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Full Answer

Sign up to receive benefits by direct deposit online, by phone or by visiting a bank, credit union or federal benefit agency office and filling out a direct deposit form. Fill in your personal contact information, Social Security number, type of bank account, account number and the routing number of the financial institution. Enter the type of payment you receive, the claim or check number of your most recent payment and the amount of the payment. The Treasury Department recommends DirectExpress debit cards for those without bank or credit union accounts, and the benefit payments are deposited into the debit card balance. Cardholders can use the cards to pay bills, make purchases and obtain cash.

As of March 1, 2013, those eligible for federal benefits are required to receive them through direct deposit, according to federal law. Although individuals not receiving benefits by direct deposit are not in compliance with the law, the Treasury Department continues to send paper checks as of April 2015. The Treasury Department makes exceptions for those who live in remote areas without banking infrastructure, those with mental impairments and those born before May 1, 1921.

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