I moved my Social Security account out of banks and into Direct Express. This is supposedly an

[jwirr]

account in the Feds Social Security account. In other words - directly from the SS account to me. What I learned is that the money is still in some bank down in Texas.

What I want to know (if any one knows): How is this money invested? Because it is in a bank is it still being gambled with like a regular savings account would be? Would it be better invested in a Credit Union?

[A HERETIC I AM]

1. You can either request a prospectus from the bank directly....

or perhaps it is online. They should provide you information as to how the funds are held. They may not call it a prospectus, but there should be some document disclosing how they handle the money.

I would give it better than a 75% chance your funds, co-mingled with similar, are invested, if at all, in nothing more risky than CD's or short term Treasuries.

[TreasonousBastard]

2. Why do you care? If for some ethical issue...

like not wanting to support robber barons, I could see that, but if you're worried about safety or returns on you money it makes little sense to worry.

Nobody's giving good interest on small accounts and an extra half point on SS payments buys maybe a cup of coffee a year. As far as safety goes, if a bank is FDIC insured, you should be OK. And, the simple truth is that most banks actually are well managed but it's not easy to tell which ones aren't until it's too late.

[jwirr]

3. It is very much about not wanting to support the robber barons.

[snappyturtle]

8. From my understanding the FDIC is grossly under funded....way more deposits

in the system than could be refunded if there is a massive collapse of the banks.



Google Ellen Brown....she has talked extensively on this topic.

[TreasonousBastard]

9. That's commonly known, but if things get that bad...

all of us who don't have a storage shed full of gold bars are up the creek.

[snappyturtle]

10. I disagree that it is "commonly" known. The banks scare the hell out of me...

not ISIS or the terrorist groups du jour.

[SheilaT]

4. Are you needing your SS to live on?

If so, it hardly matters what bank or credit union you use, other than using one that you are happy with.

Money in regular bank savings accounts really isn't being gambled with, but if you don't like big banks, then by all means don't use one. Go with a local bank or a credit union. And don't forget that the FDIC insures your accounts up to $250,000.

[jwirr]

5. Thank you. I do use it to live on every month. They give me a credit card and I pay my expenses

out of it.

[SheilaT]

6. Are there any fees attached to the card?

If not, I don't really see a down side here.

[jwirr]

7. Not any to be a problem. $.75 for a copy of the statement. My original question was because I

do not want them to use it on Wall Street. Your answer helped with that. It goes to treasury bonds. And because I use almost every penny to live on they do not have anything of mine to throw away. Thank you.