In the old days, people could open up interest-bearing checking and savings accounts at Post Office. It was a way of providing cheap accounts to people of all stripe. Those accounts may be making a comeback.
According to this TIME article, nine million families in the United States are “unbanked” which means they do not have access to a checking out savings account at a bank or credit union. It also means that they have a higher risk of being the target of robbery and violent crime. To help people, there is an idea of bringing back the checking and savings accounts accounts offered through the Post Office.
“The United States Postal Savings System was created in 1910, during a time when customers were wary of big banks. Initially, the maximum allowed balance was $500, though it was later raised to $1,000 in 1916 and then to $2,500 in 1918 — equivalent to more than $40,000 in today’s dollars. When banks regained public trust and began offering more competitive interest rates after World War II, the service lost ground and it was shuttered in the 1960s.”
Some want to have the government to subsidize accounts at private firms (like Wells Fargo, Chase, PNC, etc.) while others like the option of providing products and services to the people that need them directly through the government.
What do you think?
To celebrate Financial Education Month Bigger Than Your Block will offer a free Facebook chat with high school seniors. Shay Olivarria the author of “10 Things College Students Need to Know About Money (2nd edition)” will be on hand. The one hour chat will allow students to ask any questions they have about personal finance including:
- Choosing a credit union.
- Opening a checking account.
- Opening an investment or retirement account.
- Accepting financial aid monies.
- Locating scholarships.
- Creating a spending plan for college.
- Anything else you can come up with!
Wednesday, April 5th 6pm PST
#BTYBChat for High School Seniors
Join the chat
This year South LA Saves is providing four FREE webinars on personal finance to celebrate Financial Education Month!
Every week a new topic to help you make the most of your money will be provided … at no cost! Thanks South LA Saves!
4/ 7 Chella Diaz – Spending Plans
4/16 Shay Olivarria – Using Your Checking Account Strategically
4/24 Compound Interest & Investing
4/30 Passing on Generational Wealth
$12 on Amazon
Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com