NYC Joins CUs In Anti-Poverty Program

NEW YORK - New York City officials are teaming with four community development credit unions and four banks to offer no-fee starter accounts as part of a city-wide savings initiative.

Participant in the city's "Opportunity NYC" initiative will get $50 to open a low-cost account in one of the eight participating credit unions and banks, which will provide them with easy access to their funds, encourage saving and budgeting and help them establish credit.

Participating credit unions are: Bethex FCU, Brooklyn Cooperative FCU, Lower East Sides Peoples FCU and Union Settlement FCU.

The starter accounts will charge no fees, require no minimum balance, and provide an ATM card, as well as a $50 payment for opening the account. Mayor Michael Bloomberg's Opportunity NYC consists of three separate pilot programs aimed at improving the education, health and work-force outcomes for adults and children living in poverty.

More than 5,000 poor families in New York have already signed up for the program, which offers financial rewards for completing specific activities related to education, health, employment and training. Families can earn up to $5,000 a year.

The $50-million program is being privately funded by the Rockefeller Foundation, the Broad Foundation, the Starr Foundation, the Robin Hood Foundation, the Open Society Institute, the American International Group and Mayor Bloomberg, personally.