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Thomaston Savings Bank has joined the national Bank On initiative to reach unbanked and underbanked consumers by launching a product that eliminates overdraft fees.
The new checking account, called The Uncommon Account, was added to the bank’s product suite as part of the Cities for Financial Empowerment Fund’s national Bank On initiative, Thomaston Savings Bank said in a statement.
The CFE Fund’s Bank On National Account Standards provide local programs and financial institutions with product guidelines to meet the needs of low-income consumers who might be considered underbanked or unbanked. The goal of this initiative, the bank said, is to transition consumers away from costly alternative financial services – like payday loans and check cashing services – by establishing, or reestablishing, their relationship with a financial institution.
The Uncommon Account is the first Bank On certified product offered by a Connecticut mutual community bank, according to the statement.
“The product’s name highlights the unusual features of the account that makes it a standout amongst typical checking account offerings,” the bank said. “The Uncommon Account requires only $10 to open, has no minimum balance requirement and no monthly maintenance fee, and most noteworthy, overdraft or non-sufficient funds fees will never be assessed.”
The product is designed to be environmentally sustainable, waiving the statement fee for customers who use eStatements. It does not offer checks, instead encouraging the use of a free debit card or a mobile wallet for contactless purchases.
“The Uncommon Account is an enormous step in our ongoing journey to engage those in our community that remain outside of the mainstream banking system,” Stephen L. Lewis, Thomaston Savings Bank’s president and CEO, said in the statement. “Without a bank account, individuals and families are left spending valuable resources on unnecessary fees for alternative financial services, like payday loans, and struggle to build their savings. The Uncommon Account will help us end this vicious cycle.”
Thomaston Savings Bank accommodates unbanked individuals by letting them open an account even if they have been declined in previous attempts to open an account at a financial institution because of a history of excessive overdrafts or insufficient funds, the bank said. The account can be opened at one of Thomaston Savings Bank’s 14 locations or online.
Bank of America, Chase Bank, KeyBank and Wells Fargo also offer Connecticut residents products that meet the national Bank On standards through the Bank On CT initiative.
