SEATTLE – City officials here have enlisted 22 credit unions and banks to develop a special program to make it easier for unbanked residents to open low-cost savings and checking accounts.
The Bank on Seattle program is modeled on a successful initiative launched in San Francisco in 2006, which has attracted more than $4 million in deposits from new customers. In Seattle, the goal is to get 10,000 people to open accounts over the next two years, with 80% of the accounts remaining open for at least a year and banks providing financial education for customers.
Other cities, including Houston and San Antonio, are coordinating similar programs.
The initial participants include: BECU, Express CU, Seattle Metropolitan CU, Verity CU, Watermark CU and Woodstone CU, as well as Washington Mutual, Wells Fargo, Bank of America, Seattle Savings Bank, and several non-profits, including Hopelink, United Way of King County and YWCA of Seattle-King County.
Participants in the program will start accepting Mexican ID cards as legal identification, eliminate fees and minimum balance requirements, relax penalties for overdrafts and bounced checks, and offer financial counseling.
Seattle estimates there are 52,000 households in King County without traditional banking services. They pay an average of $800 a year in check-cashing fees.
