NEW YORK – Five community development credit unions have joined with this city’s Department of Consumer Affairs to create a special account for unbanked consumers that won’t let the user overdraft the balance in the account.
The NYC SafeStart Account is an ATM-based starter account designed to help New Yorkers protect their money by avoiding costly fees, such as those assessed for overdrafts. The account offers low minimum balances of around $25, with no monthly fees provided minimum balances are maintained, and an ATM card.
“There are no checks, so the account can’t be overdrawn,” Elizabeth Miller, a spokesman for the mayor’s office, told The Credit Union Journal yesterday.
Participating credit unions are: Bethex FCU, Lower East Side People’s FCU, Brooklyn Cooperative FCU, Neighborhood Trust FCU and Union Settlement FCU. Five banks also are offering the no-bounce accounts.
