As workers and families around the nation turn a wary eye toward our crumbling economic institutions, putting public trust back in banks is a tough sell. But panicky speculations aside, bank accounts are still a far safer, more reliable, and cheaper way to manage your money than preying institutions like check cashers and payday lenders. With this in mind, Mayor Nickels launched Bank on Seattle-King County, an initiative meant to give low-income and other residents who currently don't have (or don't use) bank accounts access to this basic service.
According to a release from the Mayor's office, the garishly lit storefront money services can cost a household earning $20,000 up to $800 per year in fees, while those who keep their money in banks often receive the same services for free or at a low maintenance charge. Currently, about 52,000 Seattle households are "unbanked," and use of cashing/lending services cost Seattle-area residents a total of almost $22 million in fees each year.
The City and County will partner with more than 20 local banks and credit unions to offer options such as checking accounts with low opening deposits ($50 or less), and the option of a zero monthly minimum balance, plus free ATM/debit cards and savings accounts, all provided with low or no monthly fees. The program will work with local non-profit organizations to do outreach and education to help reach out to unbanked residents, and to teach them about the benefits of the available services.
Educating residents and helping connect them with a more stable way to handle – and keep more of – their paychecks is certainly a thoughtful step toward a more equal and prosperous community. For more on community financial solutions, check out these posts in the Worldchanging archive:
The SRI Advantage: Why Socially Responsible Investing Has Outperformed Financially
Banking on the Community: Community Currency
M-Banking Accelerates, One M-Pesa at a Time
Photo credit: flickr/thinkpanama, Creative Commons license.
