Veterans Benefits Banking Program

Know the Differences Between Your VA Benefits Payment Options

VA beneficiaries choose among the three available options for receiving VA monetary benefits: Direct Deposit into an existing or new bank account, electronic funds transfer (EFT) to a Direct Express prepaid or other prepaid card, or mailing of paper checks to pre-approved beneficiaries.

Neither VA nor AMBA endorses any particular banks, credit unions, products or services, or requires Veterans or other beneficiaries to use them.

Your VA Benefits Payment Options

Direct Deposit is the safest, fastest, and most cost-efficient method to receive benefits payments. “Debt Collection Improvement Act of 1996” required all Federal payments to be made by Electronic Fund Transfer (EFT or Direct Deposit) beginning January 1, 1999.

 

There are three ways to change Direct Deposit—through VA.gov, National Call Center (NCC), or the direct line for international beneficiaries.

Fill out an electronic form:
va.gov/change-direct-deposit/

Call the VA Call Center:
1-800-827-1000 with routing number and account number

For international direct deposit updates, please call us at
1-981-781-7550

Direct Deposit*
Checking / Savings Account

Direct Express®**
Prepaid Card

US Government Check

Branch Banking

Direct Deposit*
Checking / Savings Account

Yes, most banks operate branches. Some are national, others are regional. Community banks operate in smaller areas. A few banks are digital only.

Direct Express**
Prepaid Card

No

US Government Check

No

Depositing Funds

Direct Deposit*
Checking / Savings Account

Unlimited deposits to checking or savings accounts

Direct Express**
Prepaid Card

Only US Government funds may be deposited; no other funds may be added

US Government Check

No

Access to Funds

Direct Deposit*
Checking / Savings Account

24/7 through ATM / POS networks, checks drawn on account, mobile payments and deposits

Direct Express**
Prepaid Card

24/7 through ATM / POS networks

US Government Check

Funds available only when check is cashed

Mobile Banking

Direct Deposit*
Checking / Savings Account

Mobile apps allow bank customers to manage accounts, set up automatic bill payments, person-to-person payments, mobile deposits, mobile payments, etc.

Direct Express**
Prepaid Card

Mobile app available only to check account balances, view transaction history, and find ATMS. Does not support card transactions.

US Government Check

No

Writing Checks

Direct Deposit*
Checking / Savings Account

Unlimited check writing on most bank checking accounts

Direct Express**
Prepaid Card

No

US Government Check

No

Automatic Bill Payments

Direct Deposit*
Checking / Savings Account

Most banks allow automatic payments of bills

Direct Express**
Prepaid Card

No

US Government Check

No

Daily Spending Limits

Direct Deposit*
Checking / Savings Account

Most banks don’t charge for or limit numbers of cash withdrawals. ATM limits vary by bank. Savings accounts limit you to no more than six transfers or withdrawals from a savings deposit account per statement cycle.

Direct Express**
Prepaid Card

No spending limits; only one free ATM cash withdrawal per month

US Government Check

Funds available only when check is cashed

Fees & Charges

Direct Deposit*
Checking / Savings Account

Low/no fees for most banking services

Direct Express**
Prepaid Card

One free cash withdrawal per deposit; fees charged for most other services

US Government Check

Fees often charged for cashing checks unless check is deposited into or cashed by a bank

Access to Financial Education and Advice

Direct Deposit*
Checking / Savings Account

Yes, most banks have robust education programs

Direct Express**
Prepaid Card

Yes, limited education programs available

US Government Check

No

Customer Service

Direct Deposit*
Checking / Savings Account

Yes, full service available

Direct Express**
Prepaid Card

Yes, limited service available

US Government Check

No

FDIC Insured

Direct Deposit*
Checking / Savings Account

Up to $250,000

Direct Express**
Prepaid Card

Up to $250,000

US Government Check

No

Ability to Save

Direct Deposit*
Checking / Savings Account

Yes, with interest-bearing checking or savings account balances

Direct Express**
Prepaid Card

No

US Government Check

No

Loans

Direct Deposit*
Checking / Savings Account

Available from most banks for qualified borrowers

Direct Express**
Prepaid Card

No

US Government Check

No

Credit Cards

Direct Deposit*
Checking / Savings Account

Available from most banks for qualified borrowers

Direct Express**
Prepaid Card

No

US Government Check

No

Fraud & Theft Protection

Direct Deposit*
Checking / Savings Account

Liability limited to $50 when fraud or theft reported within two business days; $500 when reported within 60 days

Direct Express**
Prepaid Card

Liability limited to $50 when fraud or theft reported within two business days; $500 when reported within 90 days

US Government Check

In many cases, the government will reissue stolen checks, but the process takes time

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