Following the first successful stimulus payment, public demand increased for even more direct assistance to American households as the flu raged on. In December 2021, the U.S. federal government once again provided a second federal stimulus check to America's families. This time, here is what you should know about these direct financial assistance programs, including who qualifies, how much cash was available in actuality, and how they actually work. The news media has been covering this type of assistance for years as one of the most effective ways to help combat widespread household budget deficits. If you want to find out if you are eligible for one of these financial assistance programs, read on to learn more.
In both the first round of financial assistance to America's families under the initial stimulus package and the second, financial aid was granted to families with incomes below a certain level. In some cases, this level was determined by an individual's earned income level. It could be as little as zero dollars for a single person, or as much as one thousand dollars for a couple with two or more children. In both instances, a large number of Americans were eligible to receive grants that totaled billions of dollars in value.
As detailed in the second paragraph above, the money made available through the federal assistance programs for the average citizen was channeled directly into the pockets of those who were most in need. These monetary gifts came in the form of direct monetary stimulus checks, which were then held in escrow until it was needed again by one of the applicants. While both of these programs were designed to promote a more stable financial footing in the U.S. by relieving families from financial stress after losing their jobs and increasing the availability of goods and services at reasonable cost, there are differences between the two round of checks.
In general, a federal stimulus check may be used to purchase virtually any kind of product: food, household items, furniture, small appliances, electrical and/or heating and air conditioning units, and a host of other goods. A high-yield savings account is also a potential applicant if he or she has made use of a debit card to make purchases or have excess money in the account that they would like to invest. The advantage of such an account is that one can obtain a higher rate of interest than is allowed on an account held by a traditional savings account. Many banks are now offering high-yield savings accounts that come with a guaranteed minimum balance.
The second category . . . . . . of potential applicant is the high-risk debtor. Individuals who have defaulted on student loans, tax liens or other debts may be granted relief from having to pay these creditors. This category does not include potential applicants who simply have too much debt, as this would not be a viable form of investment for a financial institution. Such individuals should apply for a government grant instead. There are two types of stimulus checks available under the present lending system: standard and special.
The standard stimulus check is in the form of direct deposits. Direct deposits allow an individual to receive monthly monetary payments directly from the banking institution where the funds are deposited. For a period of time after which, the individual is required to begin receiving payments from their bank, they must begin to make direct deposits to the new account. Direct deposits are currently being offered by most SBA-insured banks.