HOUSTON, Nov. 18 /PRNewswire/ -- The U.S. Department of the Treasury and the Federal Reserve are launching a pilot campaign in Houston aimed at increasing direct deposit use among people who receive Social Security and other federal benefits. The grassroots campaign -- called Go Direct (in Spanish, Directo A Su Cuenta) -- will kick off with a meeting today of local banking and community organizations, which will identify ways to reach Houston's high concentration of residents receiving benefits through the mail and help them enroll in direct deposit -- a safer, easier payment alternative.
More than 25 percent of Social Security and SSI payments in Houston are still sent by check, compared with a national average of 22 percent. Converting all of Houston's approximately 106,000 check payments to direct deposit could save taxpayers more than $65,720 each month, or $788,640 annually.
"Without a doubt, electronic payments are superior to checks in terms of safety, speed and convenience," said Don Hammond, Treasury Fiscal Assistant Secretary. "Houston residents who still use checks would benefit greatly from direct deposit. The response to our grassroots outreach to date has been very encouraging. Our teams are excited about the opportunity to talk with check recipients about enrolling in direct deposit so that they can take advantage of its many benefits."
Despite its advantages, the growth rate of direct deposit has diminished in recent years. Many Americans still receiving checks are elderly, disabled or low-income individuals who would benefit most from direct deposit.
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