Unemployment benefits in Maryland will be distributed via direct deposit starting in April instead of by debit cards sent through the postal service, Labor Secretary Tiffany P. Robinson announced Tuesday.
This new option is due to the state switching its unemployment insurance contract from Bank of America to Wells Fargo.
“The transition to direct deposit will not only provide a multitude of benefits for our claimants, but is yet another step Maryland is taking to modernize and maintain the integrity of the state’s unemployment insurance system,” Robinson said in a statement.
People will receive their benefits faster now that they’ll no longer need to wait between seven and 10 days to receive a debit card. Direct deposit also mitigates the risk of cards getting lost in the mail, sent to the wrong address or stolen.
Unemployment claimants who don’t have a bank account will receive their payments via paper check.
All people who receive unemployment insurance will receive detailed information about the transition in March, including how to withdraw funds left on their Bank of America cards and enroll in the direct deposit program through the BEACON 2.0 portal.
