BERKELEY, CALIFORNIA – Banking policy experts at The Greenlining Institute applauded Union Bank’s announcement today of a new account aimed at low and moderate income customers. The new “Access Account,” available in California, Oregon and Washington, offers basic banking functions, such as ATM access, online and mobile banking, with lower fees than many checking accounts and no minimum balance requirement.
“We’ve long been concerned about the 34 million U.S. households – disproportionately people of color – who are unbanked or underbanked, and who often end up paying much higher fees at check cashing stores or other alternative services,” said Greenlining Institute Economic Equity Director Sasha Werblin. “Most of the unbanked are low and moderate income families. We and other community groups have been urging banks to address the needs of these households, who often have found conventional bank accounts to be too expensive or too confusing. We’re glad Union Bank has moved closer toward meeting the needs of these families, and expect other banks to do the same.”
The Access Account does not offer checks or online bill paying, but provides ATM access, online and mobile banking, direct deposit, and discounted money orders, with no overdraft fees. It can be opened with a $25 opening balance, and after that no minimum balance is required as long as the balance remains above $0. Every customer interested in this or other products should make sure they fully understand the features of the account before enrolling.
“This new account won’t work for everyone, but we think it will be useful for a meaningful number, including customers who have trouble maintaining a high minimum balance,” Werblin said. “There is a large market out there of customers who aren’t being served by the options now available, and we urge all banks to develop new and responsible ways to meet their needs.”
