Saving Money While on Social Security Disability

It's common for those applying for disability benefits to wonder about the restrictions on having a savings account while receiving Social Security. Fortunately, having a savings account won't prevent someone from receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). SSDI is for individuals who have worked jobs covered by Social Security and are now suffering from a disability that is expected to last a year or more. SSI, on the other hand, is a federal support program for those with limited income who are aged, blind, or disabled and cannot work for a year or more.

To qualify for SSI, applicants must be US citizens or nationals, or fall into certain noncitizen categories. In contrast, SSDI only has specific requirements about having previously worked in a Social Security-covered position and meeting the definition of a disability. Once someone is approved for either program, the value of their resources, including savings accounts and other assets, can impact their eligibility. However, SSI is the only program to have specific limits on the value of someone's resources. Those who exceed the limit at the beginning of the month won't receive benefits, but they can regain eligibility the following month by reducing their resource value.