# US Social Security and Direct Deposit Fees?



## Buzzcut

My wife has been having her US Social Security payments made into our US bank account with no fees subtracted. However, we live in Japan so it would be much more convenient to have the Social Security payments made directly into her Japanese bank account here in Japan each month. 

The US and Japan have an international direct deposit agreement, so the US can send the money to Japan. However, when we checked with my wife's bank here in Japan, they said they want to charge a 4,000 yen fee for each monthly deposit. That would amount to 48,000 yen per year in fees.

The Tokyo US Embassy only tells us that we "will not have to pay to convert US dollars to Yen. This will be done at no cost" to us. The Embassy will not comment on Japanese bank service fees.

On the Expat Forum for Japan, I have tried to find someone in Japan with experience or advice, but I've received no replies.

What about in other countries? What do people receiving Social Security in other places encounter? Do banks in other countries skim fees off Social Security direct deposits?


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## Bevdeforges

Here in France, the way it works is that the total amount of all SS benefits payments set up for "direct deposit" is transferred to the FBU (Federal Benefits Unit) at the Paris Embassy. It's the FBU that then converts the lump sum to euros and does the transfers into individual French bank accounts. So the deposits are no different from those made by, say, a French employer or French (or other European) pension plan into a local bank account. 

The US government usually gets a pretty good overall exchange rate due to the large amount they are converting to euros all at once every month. If the direct deposits were being done from the US, the banks here would charge both for the exchange and for receipt of a foreign bank transfer.

I suspect that the Embassy's "direct deposit" mechanism works in a similar manner, given the statement that you wouldn't be charged for the exchange service. But it depends on Japanese banking law whether or not you would be charged for the "direct deposit" from a Japanese bank.


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## Buzzcut

Bev, 
What you write is exactly what I'd expect when I hear "direct deposit." I think my local bank is trying to pull a fast one. I may have to go to another bank.


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## Bevdeforges

Banking law may be different in Japan than it is here in Europe. Thanks to EU regulations, banks here pretty much have to accept direct deposits coming from within the EU without additional fees - but they certainly do make charges for wire transfers received from outside the EU and for most types of transfers or direct deposits and standing orders that involve non-EU banks. 

In making a quick search on the US Consulate in Japan website I do note that they have information about the FBU, though it is a little bit hard to find. You may want to contact them to ask how the direct deposit of benefits is handled and if there is a way to avoid the additional charges related to the transaction.


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