Washington, DC - Mayor Adrian M. Fenty on Wednesday announced the launch of Bank on DC, a public-private partnership between the District, regional financial institutions and community-based organizations to ensure that everyone has access to a checking account and financial education. The District’s goal is to help 10,000 residents sign up for Bank on DC accounts.
Fenty Announces Plan to Provide Bank Accounts for 10,000 Residents
(Washington, DC) - Mayor Adrian M. Fenty on Wednesday announced the launch of Bank on DC, a public-private partnership between the District, regional financial institutions and community-based organizations to ensure that everyone has access to a checking account and financial education. The District’s goal is to help 10,000 residents sign up for Bank on DC accounts.
“Bank on DC is a critical part of our efforts to strengthen the foundation of the District’s economy and help our District residents get on a path toward solid financial footing,” said Mayor Fenty. “The most basic step is to ensure that each of our residents has access to a checking account where they can secure their hard earned money and start saving for the future.”
In the District, there are more than 37,000 unbanked households and 72,000 under-banked households who spend roughly $800 a year in check cashing and money order fees. The unbanked are disproportionately concentrated in Wards 1, 4, 7 and 8 where there are more check cashing outlets than bank or credit union branches.
The Bank on DC account, offered by the program’s seven banks and six credit union partners, has no monthly fees, no minimum balance, and no courtesy overdraft protection, a feature that has caused many people to incur overdraft fees and have their accounts closed in the past. With the tagline, “Everyone is welcome”, Bank on DC’s financial partners accept foreign IDs to better serve the District’s foreign born population and offer “Second Chance Accounts” for people who have a ChexSystems history.
Sponsored by its financial partners, including HEW Federal Credit Union (FCU), Agriculture FCU, Department of Veterans Affairs FCU, District Government Employees FCU, and Treasury Department FCU, Bank on DC has launched a public campaign to promote the benefits of having a checking account.
Bank on DC also provides financial education and counseling services to the District’s unbanked and under-banked populations through their community partners, such as Capital Area Asset Builders and Operation Hope, as well as online through its online financial education learning portal developed by the Financial Education Literacy Advisors. Bank on DC is also working with employers, such as the District’s Summer Youth Employment Program, to help employees open accounts and set up direct deposit.
Bank on DC is built off the blueprint pioneered by Bank on San Francisco, which has now opened more than 50,000 accounts. San Francisco’s successful program has now taken the national stage: The District of Columbia is one of roughly 70 cities and states to replicate the program, and President Obama has included $50 million in his FY2011 budget for “Bank on USA”.
For more information please visit: http://www.bankon.dc.gov/