Life comes with plenty of challenges, but your banking shouldn’t be one of them. That’s why VA has partnered with the Association of Military Banks of America (AMBA) to launch the Veterans Benefits Banking Program (VBBP). With VBBP, Veterans and their families can safely, reliably, and inexpensively receive and manage their VA monetary benefits through financial services at participating banks.
This new program introduces new financial resources to Veterans and their beneficiaries. AMBA specializes in providing services for military personnel, Veterans, and their families around the world. VBBP’s new services will give Veterans the tools necessary to better protect their benefits from fraudulent schemes. It will also help to improve their financial literacy so that they can develop a long-term financial strategy.
Our Veterans who receive monetary benefits should have as many financial management and services options as possible. Participating VBBP banks will offer eligible Veterans federally-insured and regulated financial products, services, and education that can be tailored to their needs and the needs of their families.
The present available banking options include direct deposit into an existing bank account, electronic funds transfer into a Direct Express pre-paid debit card, and mailing of a paper check for pre-approved beneficiaries. VBBP expands upon these offerings.
VBBP introduces new financial resources to Veterans and their beneficiaries. It will expand these offerings by giving Veterans more choices, and it addresses issues some Veterans experience using the payment methods currently available to them. VBBP offers these VA beneficiaries – including many who have been unable to open bank accounts in the past – the opportunity to deposit their benefit funds directly into existing or new bank accounts offered by participating AMBA member banks.
VA delivers approximately $118 billion annually in benefits and services for Veterans and their families, ranging from disability compensation, pension and fiduciary, education, home loan guaranty, vocational rehabilitation and employment, life insurance, and transition and economic development. There are approximately 250,000 Veterans and beneficiaries who receive their VA benefits through a pre-paid debit card or paper check who may not have a bank account.
Neither VA nor AMBA endorses any bank and does not require Veterans and other beneficiaries to use them. Veterans who are satisfied with their current financial situation are not required to change how they receive their VA monetary benefits.
How to enroll
To have your federal benefits electronically transferred to a your bank, eligible Veterans should visit VA.gov/change-direct-deposit or call VA at 1-800-827-1000 with relevant banking information.
Joseph Gurney is a senior advisor, fiscal stewardship, for VA’s Veterans Benefit Administration.