50,000 Veterans Now Receive Benefits Through Direct DepositUpdated March 10, 2021 News
The Department of Veterans Affairs’ (VA) Veterans Benefits Banking Program (VBBP) has reached a new milestone with more than 50,000 Veterans having switched to receiving their monetary benefits through direct deposit.
VBBP was created in partnership with the Association of Military Banks of America (AMBA) and works with the Defense Credit Union Council (DCUC) to leverage their combined consortium of military-friendly, federally insured financial institutions to help Veterans acquire a secure bank account.
Veterans who do not have an account with a financial institution must receive their benefit payments through a paper check or pre-paid debit card, which puts them at an increased risk for fraud and subject to high service fees.
“At any given time, there are more than 175,000 Veterans without a bank or credit union account,” said Acting Under Secretary for Benefits Veterans Benefits Administration Thomas Murphy. “It is VA’s responsibility to ensure Veterans and their families get the benefits they have earned — on time, every time. VBBP is just one way we are working to make that happen.”
Since the program’s inception in December 2019, the number of Veterans who rely on paper checks and pre-paid debit cards for their benefits has steadily decreased. While services available will vary among financial institutions, VBBP makes it easier for Veterans to choose a bank or credit union based on how these services align with their individual banking needs.
VA, AMBA and DCUC do not endorse any bank or credit union and Veterans are not required to use a VBBP bank or direct deposit to receive their monetary benefits.