Effective Dates: 03/26/2026 - Present Previous | Next

TN 20 (03-26)

GN 00603.010 Conserving Benefits in a Savings or Checking Account

A. Policy — savings or checking account

Funds not needed for the beneficiary's current maintenance may be deposited in an interest-bearing or dividend-bearing account in a bank, trust company, credit union, or savings and loan association that is insured under either Federal or State law.

NOTE: Any interest earned belongs to the representative beneficiary and not to the payee.

 

1. Account titling overview

Any account that the payee uses to receive or hold a beneficiary’s funds must be titled to show the funds belong to the beneficiary and that the payee has only a fiduciary and not a personal interest in the funds. A fiduciary account is an account established by a person or entity (the representative payee) for the benefit of another party (the beneficiary). The fiduciary nature of the account must be disclosed in the financial institution’s deposit account records. Funds deposited by a fiduciary, on behalf of a beneficiary, are owned by the beneficiary. 

For more information on account titling, see “Account Titles” (GN 02402.050), “Direct Deposit for Representative Payee Cases” (GN 02402.055), “Collective Savings and Checking Accounts” (GN 00603.020), and “How to Title Accounts Managed by Representative Payees” (GN 00603.021).

NOTE: Generally, a beneficiary's funds must not be commingled with the payee's personal or organizational operating funds. For exceptions to this policy, see “Account Titling Exceptions” (GN 00603.021C), "How to Title Accounts Managed by Representative Payees" (GN 00603.021) and “Exception” (GN 02402.055D).

2. Transfer of conserved funds

To facilitate accounting and transfer of conserved funds when payee services cease, we prefer that payees hold conserved funds in a separate account. Follow GN 00603.055 for instructions on transferring conserved funds when a payee stops serving as payee.

NOTE: 

After a payee stops serving a capable beneficiary aged 18 or older, conserved funds payable to a beneficiary cannot be directed to a trust account for that individual even if the account was established before age 18. Conserved funds belong solely to the beneficiary.

B. References

  • •

    GN 00603.021 How to Title Accounts Managed by Representative Payees

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    GN 02402.050 Direct Deposit for Representative Payee Cases

  • •

    GN 00603.020 Collective Savings and Checking Accounts

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    GN 00603.055 Transfer of Conserved Funds

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    GN 02402.055 Representative Payee Cases - Direct Deposit

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0200603010
GN 00603.010 - Conserving Benefits in a Savings or Checking Account - 03/26/2026
Batch run: 03/26/2026
Rev:03/26/2026