It is a good idea to ask Social Security to send the benefit checks to a bank account by direct deposit. We recommend that you hold funds for current and foreseeable needs in a checking or savings account. As with your own money, it is not wise to keep large amounts of cash at home where it may be lost or stolen. Also, do not mix the beneficiary's funds with your own or other funds. The preferred ways of holding savings are in U.S. savings bonds or in an interest-paying bank account that is insured under either federal or state law.
Interest paid on savings belongs to the beneficiary.
To protect the beneficiary's funds, checking and savings accounts must show the beneficiary as the only owner . Neither the representative payee nor a third party can have ownership interest in the account. While the beneficiary retains ownership interest, the account title should not permit him or her to have direct access to the funds. Although these are the most common methods of identifying accounts, any account title which under state law shows beneficiary ownership, and you as fiduciary, is acceptable. If you are not sure, ask your bank.