Bank account plan announced
Gov. Arnold Schwarzenegger and four mayors announced a program Friday to help people without bank accounts to open them and avoid high fees.
According to the Pew Charitable Trusts, a nonprofit public-policy group, the average “unbanked” Californian is a low-income, Hispanic worker who pays $700 a year in fees to cash checks and take out short-term loans from pawnshops and tax preparers.
Under the program, known as “Bank on California,” state and local officials will encourage banks to offer low-cost accounts -- in the range of $7 a month -- with no minimum balance requirements. Such programs are in place in cities across the country. San Francisco launched one two years ago, leading to the creation of 25,000 accounts, officials say.
Joining the governor at the announcement in the Capitol were the mayors of San Francisco, Oakland, Sacramento and Fresno. Los Angeles and San Jose also plan to participate.
More information is at www.bankoncalifornia.ca.gov.
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