Check-Cashers Plan Insured Deposit Acct.
A trade group representing check-cashing outlets indicated it will offer an interest-bearing deposit account that is to be backed by FDIC insurance. The account will be linked to exiting prepaid debit cards that are frequently used by customers of check-cashers, according to The American Banker, an affiliate of The Credit Union Journal. The Financial Service Centers of America said the goal is to help the often low-income customers of check-cashers to build savings; many people use the non-interest bearing debit cards for savings. The product could be available as early as Oct. 9.