Today Mayor Johnson launched ‘Bank on Sacramento’ in an effort to help thousands of Sacramentans experience the financial benefits of opening a bank account. Sacramento is one of seven cities selected for Governor Arnold Schwarzenegger's ‘Bank on California’ initiative, a collaborative initiative that will give over 30,000 unbanked households in Sacramento access
to mainstream financial products and services.
The overall goal of ‘Bank on California’—the nation’s first statewide initiative of its kind—is to help
100,000 Californians without checking or savings accounts open starter accounts at banks and credit
unions.
The goal for Sacramento is to help 6,000 unbanked Sacramento residents open a no or low-cost starter checking or savings account and get on the path to financial stability.
“’Bank on Sacramento’ is a great opportunity for our city. At the end of the day, people will be able to
keep more of their paycheck at a time when money and resources are scarce. In addition, our economy will reap the benefits of residents establishing bank accounts and building a credit history. This is a win-win for Sacramento.”
Without a bank account, Sacramento residents pay expensive fees for financial services through checkcashers and payday lenders that banks and credit unions provide for little or no cost. Personal safety is also a factor when carrying/storing cash.
Currently in Sacramento, fees from check cashers and payday loans total nearly $17 million per year,
according to the Brookings Institute.The average worker will also throw away more than $40,000 over a lifetime (about $800 per year) on check-cashing and payday lending services - services that are free or less expensive with a bank account.
‘Bank on Sacramento’ will actually save Sacramentans millions of dollars and serve as a gateway to
financial stability and security. With checking and savings accounts, more Sacramentans can establish
savings, build a credit history, gain access to lower-cost sources of credit and invest for the future.
‘Bank on Sacramento’s starter accounts are also safe, easy to open and maintain, and are effective.
They are low cost, have no monthly minimum balance requirement, are federally insured, allow several forms of identification and provide “second chance” accounts for people who may have mismanaged accounts in the past.
Underserved Californians aren’t the only people ‘Bank on California’ will help – banks and credit
unions will also gain core customers.
Mayor Johnson has partnered with Governor Arnold Schwarzenegger, former President Bill Clinton,
city mayors, the FDIC, federal and state regulatory agencies, financial institutions and community
groups to put this innovative plan into action.
To date, 11 financial institutions, 48 community organizations, totaling over 150 coalition members
have joined ‘Bank on Sacramento.’
Financial institutions include Bank of America, Bank of the West, BBVA Compass, Chase Bank,
Citibank, Patelco Credit Union, SAFE Credit Union, Schools Financial Credit Union, Travis Credit
Union, Union Bank, Wells Fargo.