Social Security beneficiaries enrolled in the direct deposit program, December 1983.

In 1975, Social Security beneficiaries were given the option of having their monthly benefit payments sent directly to their banks through an electronic funds transfer system. Since then, beneficiaries have been enrolling in this program in rapidly increasing numbers. At the end of 1976, fewer than 5 million beneficiaries--14 percent of the total--were enrolled in the program. By the end of 1983, the number of direct depositors had risen to nearly 14 million--or 2 of every 5 beneficiaries. This article gives an overview of the direct deposit program and the events that led to the initiation of the electronic funds transfer system. Detailed data on the demographic characteristics of those using the program are also presented.