The New America Foundation's Asset Building Program applauds the FDIC's (Federal Deposit Insurance Corporation) decision to establish a Model Safe Accounts Pilot program and encourages insured depositories, large and small, to participate, aiming at serving the unbanked and underbanked population.
 
Unbanked and underbanked consumers face high transactional costs for performing basic banking procedures. The FDIC model account begins to provide consumers with basic criteria that they can look for when opening a basic checking or saving account.
 
"Consumers should not have to guess what basic banking will cost them; nor should they have to sacrifice their hard earned money just to cash a check, withdraw cash, or pay a bill." Said Anne Stuhldreher, Senior Research Fellow at the New America Foundation, "This pilot is an important step to ensure all Americans have access to safe and secure bank accounts, which serve as on-ramps to economic stability and upward mobility."
 
The Asset Building Program provided the FDIC with comment on the terms of the account, based on experience with the AutoSave pilot, which leverages the workplace and existing payroll infrastructure to deliver a safe savings product in a low-cost manner. Like the FDIC model account, AutoSave accounts are federally insured, low- or no-cost accounts that are structured to both encourage saving and not penalize a saver who needs access to funds.   
 
The Asset Building Program encourages all eligible financial institutions to participate in the pilot. "Products that help families build wealth and security are a critical alternative to the wealth-stripping options that many families currently rely upon," said Alejandra Lopez-Fernandini, Senior Policy Analyst at the New America Foundation. "While this pilot is a good step forward, it requires financial institutions to step up to the plate in order for it to succeed."

For more information, please contact Alejandra Lopez-Fernandini, 202-986-2700 or lopez@newamerica.net.
 
For media requests, please contact Kate Brown at 202-213-7051 or brown@newamerica.net.