If a bank has a levy from a collection agency can they hold any monies from a social
Security check deposit being deposited or being cashed ?

A levy can only come through the court, based upon a judgment on file.

Has the collection agency sued you yet? If not, there will be no levy until they do.

Some fixed income is subject to levy or garnishment depending on what type it is and where you live. You should check the specific laws in your jurisdiction.

Generally, they are not subject to garnishment or levy.

Here is a link that contains much information and more detail.

SSR 79-4 (http://www.ssa.gov/OP_Home/rulings/oasi/41/SSR79-04-oasi-41.html)

I wish you the best!