WASHINGTON-Five Capitol-area credit unions will offer low- or no-fee savings and check accounts as part of Washington's new Bank on D.C. program.
The program was launched yesterday at CUNA's Credit Union House, a block from the Capitol, by D.C. Mayor Adrian Fenty and representatives of participating credit unions, including HEW FCU, Agriculture FCU, District Government Employees FCU, Signal Financial FCU and Treasury Department FCU. Seven local banks will also participate.
Under the program, modeled after the successful Bank on San Francisco and programs in 70 other cities, the CUs have agreed to offer the low-cost accounts not only to new account holders, but to their current members.
About 37,000 D.C. households-maybe as many as 235,000 city residents-have no bank accounts, according to a study by the Federal Deposit Insurance Corp. Another 72,000 households are underbanked.
To participate in Bank on D.C., banks and credit unions must offer companion checking and savings accounts that include an opening deposit of $25 or less, no monthly maintenance fees, no monthly minimum balance and free use of a check card and ATMs.
Bank on D.C.'s financial partners will also accept foreign identification cards to better serve the District's foreign-born population, and will offer "Second Chance Accounts" for people with negative check-writing history.
CUs are a dominant force in area consumer finance with more than 60 credit unions located in the District of Columbia, with around 40% of D.C. residents owning accounts at a local CU and 20% calling a CU their primary financial institution. One in five auto loans in the area is done through a CU. CUs experienced a 20% increase in mortgage originations in the DC area in 2009.
