Thanks,

Patsy

But the vast majority of people have no problem using their regular checking accounts for SS direct deposits. And you won't the hassle and expense of maintaining a second bank account.

If you do not need the income for daily living expenses, then why not have the money put into a savings account so it won't tempt you to spend it?

I'm going to a seminar in a couple of weeks, so I'll be paying attention. Altho the presenter has an investment business, the seminar is presented by one of the local adult schools, so seems credible. I am very very very critical of sales pitches masquerading as 'educational seminars' and will be the first one to walk out and complain to the school if this isn't at least 80% on the non-sales side. For $35, it had better be mostly straight info. I'm not against learning what the salesmen's latest pitches are (annuities, etc), but I sure as heck am not going to pay for it!

I was Daunt's POA, then after her death, her executrix. She had 4 pensions that were direct deposited. The day after her death, I called each of them (2 were from the same insurance company) and told them of her death. An idiot clerk wrote down the wrong date (year, actually) on the paperwork. Imagine my surprise, about 3 weeks later when I got her bank statement and found her account over $8000 less than it should have been!!! The insurance company just helped themselves to a year's worth of her pensions--not a word, call or letter to me. They were WRONG!!! She died a year later than the idiot noted on the papers. It took me several months to get the money back and was a HUGE hassle.

Bottom line is that when you give someone the authority to put money into your account, you are also giving them the authority to take money out. If a mistake is made, they can have your money before you even know it's gone. I was a wreck, in the case above, because I was afraid the check to the funeral home was going to bounce (DA died with very little money left after 2 years in a nursing home).

I know it doesn't happen often, but from where I'm sitting, the fact that it happened in my household once already is just a little to precarious for my liking. DH and I opened a checking account for $1000 in a separate bank from where we have our savings and regular checking accounts. We ONLY use that account for our direct deposits. And as soon as the money comes in, we move it to the other bank where we actuallly keep our money. So if anyone wants to stick their hands in our account, the most they're going to be able to get is only going to be that $1000 we keep there to keep the account open.

Now, I've discovered a side benefit to keeping a separate account for our dd's. Between us, we have: 2 SS checks (his, mine), his pension, my annuity, my paycheck. With all that money coming and going at different times of the month, it's really a lot simpler to be using a separate account for it. I'm one of those rare people who likes their checkbook balanced to the penny at all times. If I had those direct deposits bouncing around with checks going out to the cable company, phone company, etc, it would be a whole lot harder to keep track of everything. this way, a deposit comes in, we write a check for the exact same amount, and then decide where it's going to go.

Look, I know I'm being paranoid about this whole subject but I figure with a bank on pretty much every corner, it's simple enough to use two of them, just to give us a little more protection. A YEAR'S worth of pension payments? I cannot imagine what I'd do if someone lifted that much money from me without asking. And I already know how much red tape was involved in finding and fixing that mistake. Don't want to ever go through it again.

You have to make your own decision, based on how comfortable you are with your direct deposits, who's sending them, your bank, the convenience of using one or more banks or accounts. I'm finding it nice to have options--not only do we have the protection, and a simpler task balancing that account, but the banks I chose--while both are close--are in different directions, so it's nice that we can one whichever way we turn at the end of our block.

Don't forget--if you're married or were married--to inquire about marital SS benefits. My check went up by about $150 when DH started collecting his (I started a month or two before him).

I have no idea of the stress you must have been under while trying to straighten out the correct date of death. I like your thoughts on why you have different accounts. Although, I suppose the chances of having an institution taking back money is slim for me. However, I certainly believe in in the "ounce of prevention worth a pound of cure".

I have always used 3 checking accounts (2 are with credit unions) as I have residences in NC and FL (one is a home business account). The only problem I see..... what would happen if something happened (like an accident) to prevent you from transferring your funds in time for checks to hit?

And again--I totally realize that MOST people have absolutely no problems with direct deposit. I'm just a little over-cautious. And having that sort of thing hit when you're burying a loved relative, planning their memorial service, trying to handle all the 'stuff' that comes with losing someone--the financial issue probably did make more of a negative impression on me because of my emotional state.

I just offer the experience and our solution as one option to consider. It's really up to you what you want to do with yours. I will say, so far (I turned 62 in May) filing and collecting SS has been SO easy. Don't forget--you can file a few months before you turn 62, so your payments won't be held up. You don't have to wait until your birthday. And I'd strongly recommend going into the SS office in your area. They were SO nice and so very helpful for both me and my husband when we were filing. Made it very quick and easy.

After hearing about Aazalea's experience, when I do retire, I think I will set up a second bank account. What a nightmare!

Contact your local Area Agency on Aging office, whatever it is called in your area, it should be a part of the local county government structure, and ask for a referral for SHIP counseling.