U.S. Treasury & Federal Reserve Kick Off Direct Deposit Campaign.

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.

There are three benefits the campaign seeks to communicate about direct deposit:

— It’s safer. Direct deposit protects people from fraud and identity theft. In fact, no direct deposit payment has ever been lost or stolen.

— It’s easier and more convenient. Direct deposit saves people a trip to the bank or check cashing store – their money is already in their account when they need it.

— It gives people more control over their money. Direct deposit is completely predictable – people know they’ll have their money at the same time each month to pay bills.

More than 30 Houston-area organizations are expected to participate in today’s launch meeting, including Catholic Charities, Guaranty Bank, Laredo National Bank, Sterling Bank and the YWCA of Houston. “The YWCA of Houston is excited to be involved in Go Direct,” said Mary Mayfield, Director of Senior Services. “By encouraging our constituents to direct deposit their federal benefits, we’re helping them get more control over their money and make their lives a little easier.”

Besides Houston, Go Direct will focus on Austin, Dallas, and San Antonio in Texas; Chicago and Springfield in Illinois; Knoxville, Memphis and Nashville in Tennessee; and all of Puerto Rico.