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Jawny

Direct deposit options for federal annuities

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Jawny

The Social Security Administration now offers two methods for direct deposit to Philippine banks.  Not sure if all banks know about this, but for those who are interested, it may be worth a look as an option.  This may also apply to other federal benefits paid to overseas recipients.  

·         Correspondent direct deposit (CDD) – this requires a third party financial institution when funds are transferred from the US Treasury Department to the Philippine Bank.  There are only about 10 Philippine banks that participate in CDD.

US dollar or Philippine peso accounts are both acceptable for CDD. The account must be under your name alone. You are given a passbook for this type of account, which means you need to visit the bank  each month to withdraw your funds.

·         International direct deposit (IDD) – you may use any bank in the Philippines for this. No need to let the bank know that the account will be used for social security. It should be in local currency only. The bank rep does not need to sign the form. Simply provide your account number and the bank’s SWIFT  code.

Both CDD and IDD are acceptable for Social Security. However, it seems that some banks may insist upon one over the other.  Though SSA will not stop your payments simply because you are using CDD, your bank may not accept the payment transfer if your account format is not what they prefer.  

Forms: 

SSA-1199 -OP77

SF-1199a

 

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Headshot

I just have my SSA benefits (along with my other pensions) go into my credit union in the US, and then have them wire however much I need to my bank in the Philippines. I would rather not keep any more money in the Philippines than is necessary. SSA also puts more restrictions on accounts in foreign banks than they do on US financial institutions.

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Jawny

Sorry, I should have been more clear. Too late to edit.  However, the post was intended to convey to LinC members that there are two options for having money sent DIRECTLY from the SSA to a Philippine bank, on a monthly basis. In the instances described in the OP, it is a way to get money without any intervening action.  Some LinC members already use the CDD as described.  It is pretty common. The other method (IDD) is basically a form of a wire transfer without the fees.  Only it must be in pesos and has restrictions on ownership of the account. 

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Salty Dog
19 hours ago, Headshot said:

I just have my SSA benefits (along with my other pensions) go into my credit union in the US, and then have them wire however much I need to my bank in the Philippines. I would rather not keep any more money in the Philippines than is necessary. SSA also puts more restrictions on accounts in foreign banks than they do on US financial institutions.

Does the SSA know you're living in the Philippines...

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Headshot
9 hours ago, Salty Dog said:

Does the SSA know you're living in the Philippines...

I applied for SSA benefits in Manila, so I would hope they know where I live. All of my SSA correspondence goes to my FPO address, which is another clue. It ensures that I get a drop-dead (verification of life) letter from SSA every year. My father drew SSA for 31 years, and he never once received a drop-dead letter from SSA. I guess they feel we are special because we live in the Philippines.

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smokey

I also have my main bank usa and every month write a check to bank here cost 5 dollars normally i take 3000 us per month except nov and dec.   Christmas property tax 13th month etc

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