DCA Sets ‘NYC First Account’ Program
Department of Consumer Affairs (DCA) Commissioner Jonathan Mintz and Department of Youth and Community Development (DYCD) Commissioner Jeanne B. Mullgrav have announced the NYC First Account, a safe bank account designed to encourage young New Yorkers to open a bank account as they enter the workforce for the first time. The account is available to all DYCD Summer Youth Employment Program (SYEP) participants between the ages of 18 and 24. The NYC First Account is the next step in DCA’s efforts to develop safe banking products and encourage New Yorkers to become banked.
“There are approximately 825,000 New Yorkers who do not have bank or credit union accounts, so our goal is to not only find a way to connect them safely to the banking mainstream, but also to break the unbanked cycle,” said Commissioner Mintz. “These priorities led us to develop the Citywide NYC SafeStart account and now the NYC First Account. We’re pleased to have banks and credit unions, large and small, local and national, who have agreed to go beyond traditional outreach partnerships to offer specific and safe accounts for New Yorkers.”
“We are delighted to be partnering with the Department of Consumer Affairs to bring smart banking options to our SYEP participants,” said Commissioner Mullgrav. “This initiative builds on the innovative debit-card payment system that DYCD introduced in 2004, which streamlined the payroll process and allowed participants safe and convenient access to their earnings. The NYC First Account will familiarize young people with the advantages of traditional banking and saving and set them on a path for long-term financial stability.”
“At Chase we offer products to serve the many financial needs of our diverse customer population,” said Chase Executive Vice President Stephanie Mudick. “We are happy to work with DCA to reach those who are new to the banking system and may not yet have a banking account.”
“Citi is delighted whenever we can use our resources to benefit the members of our communities,” said Citi Community Development State Director for New York Eileen Auld. “The NYC First Account is going to help young New York City residents step into adulthood with their best foot forward. We’re working hard to help people establish sound financial practices, which is a basic need for economic empowerment. With a large number of NYC First Accounts opened at Citi, we’re confident that this program is going to have a strong, positive impact.”
The NYC First Account is a “checkless” checking account with identical terms and conditions for at least two years at all institutions. Features include:
Debit card with a Visa or
No monthly fees
No minimum balances
No overdraft fees. If sufficient funds
are not available, purchases will not
Free withdrawals at sponsoring bank
or credit union ATMs
Free online banking and free bill pay
In addition, participating banks and credit unions have agreed not to market fee-based overdraft plans to program participants. The account is being offered in partnership with Check- Spring Bank (Bronx), Citibank (Citywide), Cross County Federal Savings Bank (Brooklyn and Queens), JPMorgan Chase (Citywide), Municipal Credit Union (Citywide) and New York Community Bank (Citywide).
DYCD’s Summer Youth Employment Program (SYEP) provides New York City youth between the ages of 14 and 24 with summer employment and educational opportunities. Participants work in a variety of entry-level jobs at government agencies, hospitals, summer camps, nonprofits, small businesses, law firms, museums, sports enterprises and retail organizations. Since the program started, more than 2,000 of the eligible participants have opened NYC First Accounts.
In February 2010, DCA’s Office of Financial Empowerment (OFE) announced the findings of its Citywide Financial Services Study, which for the first time quantified the number of unbanked adults in New York City. The study found that more than 825,000 adult New Yorkers do not have bank accounts, but instead use fringe financial services like check cashers to pay bills, cash payroll checks, buy money orders and conduct other financial transactions. To help New Yorkers transition from using high-cost fringe financial services, DCA created NYC SafeStart Account, the City’s first banking product available to all New Yorkers. Opening an NYC SafeStart Account is the number one tip in DCA’s recently launched Protect Your Money public awareness campaign, which aims to help New Yorkers save and make the most of their hard-earned dollars.