Social Security: Get an Advance on Your Monthly Payment With No Additional Costs Through This Online Bank
Written by
Vance Cariaga
Edited by
Daria Uhlig
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One of the main financial challenges facing retirees is learning to live on a fixed income — especially for those who depend on Social Security to pay most of their bills. When an unexpected bill comes up, you might not be able to pay it until the next Social Security payment arrives. A fintech called Charlie aims to fix that problem by offering advances on monthly Social Security payments.
Charlie customers can get Social Security payments up to four weeks early, the company said on its website. The first step is to open an online Charlie account and then move your Social Security direct deposit into that account. When your first Social Security payment arrives, Charlie gives you the option of receiving future payments as soon as the first of each month with no fees or interest.
Banking services on Charlie accounts are provided by Sutton Bank, an FDIC member. The FDIC insures your money up to $250,000 per depositor, per bank, per ownership category.
Charlie launched nationwide in May with the goal of giving seniors faster access to their Social Security checks. Accountholders can earn 3% interest on average balances, with no monthly fees or minimums. The company also touts U.S.-based customer service designed to make it easier for customers to have their questions answered.
“In the United States, the 62+ community has never had financial services designed for their unique needs. Charlie was created to change that,” Charlie co-founder and CEO Kevin Nazemi said in a press release. “Charlie is designed to meaningfully address the challenges retirees and soon-to-be-retirees face financially: shifting from accumulating assets to deaccumulation, the struggles regarding transparency and trust in the financial services world, and a lack of options to help them make the most of their limited resources to enjoy life.”
Charlie provides a unique service that should prove particularly useful to the 40% of U.S. seniors who, according to CBS Los Angeles, live exclusively off of their Social Security checks.
For most Social Security recipients, payments are made once a month on the same schedule, according to the Social Security Administration. Those born on the 1st through the 10th get their payments on the second Wednesday of the month; those born on the 11th through the 20th get payments on the third Wednesday; and those born on the 21st through the 31st get payments on the fourth Wednesday.
In addition to giving seniors quicker access to Social Security checks, Charlie aims to make the entire banking experience easier through a user-friendly online banking platform that features font sizes, color contrasts and navigation tools designed for seniors.
The company also emphasizes transparency on fees, charges and options, while giving users “multiple settings” to tailor services to individual needs. In addition, customers have access to fraud protection geared toward the spending habits of seniors, CBS Los Angeles noted — including 24-7, real-time monitoring that looks for changes in where customers buy gas, shop for groceries and leave town.
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