Essential Bank Account
The California Reinvestment Coalition (CRC) is advocating for a low-fee account known as the Essential Bank Account. This account could serve as a gateway into the financial mainstream for 20 percent of the population that is considered “unbanked” (without bank accounts). Potential customers for this account include senior citizens, immigrants, the working poor, federal and state program beneficiaries and generally anyone in need of financial services. The Essential Bank Account has free money orders in lieu of checks and would allow account holders to draw their accounts down without incurring fees for non-sufficient funds (NSF) and/or if their accounts are in the negative.The following is a list of general problems with California’s major banks’ low-cost and/or “free” checking accounts:
- Monthly service fee if customer does not have minimum balance
- Excessive fees for NSF that put customer in danger of being listed on ChexSytems
- Existing deposit-only accounts (no checks) require customers to pay bills on-line, which is not always a possibility for low-income customers
- Fees for exceeding allowable transactions with a live teller or calls to customer service
- Free or low cost account
- Direct deposit
- No checks
- ATM/Debit Card with unlimited use
- Unlimited teller access and telephone customer service (live and pre-recorded)
- Five money orders per month included
- No minimum deposit to open and no minimum balance to maintain
- Account statement (hard copy, not on-line)
- Loosened ChexSystems screening: Non-fraudulent activity is disregarded if overdraft has been paid
- No credit score requirement to open an account
- Publicized acceptance of Matricula Consular as well as other foreign government-issued identification cards (i.e., Consular Identification cards) for primary identification
- Publicized acceptance of alternative identification (i.e., utility bills) for secondary identification
- No enrollment in a “bounce protection” plan
- Aggressively marketed
