St. Petersburg (August 21, 2009) –The first Bank on St. Pete program in Florida designed to help people who are not current bank customers or have a troubled banking history achieve financial stability by opening and managing a bank account is underway in St. Petersburg. The Bank on St. Pete initiative offers members of the city's unbanked population specially designed financial products that encourage them to deposit the money usually spent on fees at the check casher into a low or no cost checking account and begin to save for the future.
Bank on St. Pete offers people the ability to save as much as $40 per pay check, in some cases, in check cashing fees or up to $40,000 over their lifetime, by utilizing one of these special accounts. Account features include: no or low opening deposits, monthly maintenance fees and minimum balances; direct deposit of paychecks or monthly benefit checks; free ATM/debit cards; and access to online banking, bill pay and money transfers. Participants in Bank on St. Pete also have access to financial education, including learning how to budget, paying bills on time, or saving for a car or their first home.
"The Bank on St. Pete program has the potential of elevating thousands of St. Petersburg's families by bringing them into the financial mainstream and helping them keep more of the money they have earned," said St. Petersburg City Council Member Karl Nurse. Nurse became aware of the ´Bank On' program while attending a National League of Cities conference last year and believed St. Petersburg would greatly benefit from its own program. St. Petersburg is the first of eight other cities selected to participate in the second phase of the nationwide National League of Cities initiative and the first in Florida to launch its own Bank On program.
A joint effort between the city of St. Petersburg, the Federal Reserve Bank of Atlanta, Project Prosper,
the Federal Deposit Insurance Corporation (FDIC), the National League of Cities and the Wealth Building Coalition/Pinellas Prosperity Campaign, Bank On St. Pete has also partnered with 14 financial institutions representing 40 local banks or credit union branches, as well as various community non-profit organizations who will assist in providing financial education and outreach to enrollees.
"I am especially pleased with the way city government, representatives from the St. Petersburg financial community and social service organizations have joined forces to give our unbanked citizens the chance to get on the road to financial freedom," said Mayor Rick Baker. "Bank on St. Pete is a wonderful opportunity for those individuals toward taking the first steps toward a strong financial future."
Approximately 18,300 St. Petersburg households do not use traditional banking methods, instead relying on check cashers or other resources due to fears of maintaining a minimum account balance, a lack of understanding of available financial products, or mismanagement of past accounts. Banks and credit unions were selected based on their ability to service customers who have never had a bank account, as well as those with a troubled banking history.
The Bank on St. Pete Second Chance program allows individuals with a troubled banking past open accounts after attending a series of financial education classes, which will equip them with the tools to manage their account properly and move on to other financial products.
"This program provides a tremendous opportunity for cities to engage their citizens in an effort to build assets and create financially stable households, said Kathleen M. Novak, president, National League of Cities, mayor, Northglenn, Colorado. "The opportunities this program provides are critical to enhancing the broader economic vitality of cities."
More information on the products and services offered by Bank on St. Pete, including a list of participating banks and credit union locations, is available at www.BankOnStPete.org or by calling 211.
BANK ON ST. PETE FINANCIAL PARTNERS
Bank of America – Silver Sponsor
Bay Cities Bank
Cornerstone Community Bank
Eastern Financial Florida Credit Union
(a Division of Space Coast Credit Union)
First Community Bank of America – Bronze Sponsor
Florida Central Credit Union – Silver Sponsor
GTE Federal Credit Union – Bronze Sponsor
Grow Financial Federal Credit Union
Pinellas Federal Credit Union – Silver Sponsor
Suncoast Schools Federal Credit Union – Silver Sponsor
SunTrust Bank – Silver Sponsor
Raymond James Bank – Silver Sponsor
Regions Bank
Wachovia – Gold Sponsor
BANK ON ST. PETE PROJECT PARTNERS
The City of St. Petersburg
Wealth Building Coalition/Pinellas Prosperity Campaign
Project Prosper
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve Bank of Atlanta
National League of Cities' Institute for Youth, Education and Families