Great Lakes Wire

A coalition was formed in March with the goal of ensuring that Michiganders have access to low- or no-cost accounts with financial institutions.

There is now a program in place with over 15 businesses offering those accounts. This will help residents participate in the state’s growing economy by boosting access to financial services.

The Michigan Open Account Coalition’s (MOAC) new program, MI Open Account, offers Michiganders the opportunity to open certified low- or no-cost accounts with no hidden fees or costs at several banks and credit unions in the state, according to a press release from the governor’s office. The coalition comprises the Michigan Bankers Association, Michigan Department of Insurance and Financial Services, Michigan Credit Union League, and community organizations.

The MOAC’s mission is to “encourage relationships between financial institutions and historically underserved communities, educate consumers about the importance of having a relationship with a financial institution, and promote the availability” of and access to consumer financial accounts, the press release noted.

“Not having access to financial resources and tools costs unbanked and underbanked Michiganders an average of $3,000 a year in fees for check cashing, money orders, bill pay services, third-party debit cards, and more,” Gov. Gretchen Whitmer (D-Mich.) said in the press release. “Michiganders deserve access to safe and secure financial services without paying an arm and a leg in hidden fees.”

The Cities for Financial Empowerment Fund certifies MI Open Accounts, which have national account standards forbidding fees for account activation or closure, overdraft, dormancy, inactivity, and low balance, the program’s website said. There are limits on minimum opening deposits ($25 or less), ATM fees (no fees in-network; $3 or less out-of-network), and monthly maintenance fees ($5 or less).

Participating institutions are listed on the program’s website.

The Community Economic Development Association of Michigan said in a 2020 article that Michigan needed to act “to promote inclusive banking access” due to the number of “unbanked” households.  

“Prior to the pandemic, the nation’s household unbanked rate had decreased from 6.5% in 2017 to 5.4% in 2019,” the article said. “Unfortunately, Michigan bucked national trends and went in the wrong direction — experiencing an increase in unbanked households from 5.6% to 5.7%.”

Race and low income are some of the barriers to opening and possessing a bank account, the article said.

“Some consumers may not have an account at a bank or credit union because they worry that there might be hidden fees or terms that they do not understand,” Anita Fox, Michigan Department of Insurance and Financial Services director, said in the press release. “We’re pleased that Michigan’s banks and credit unions have joined with us to offer and promote low- and no-cost accounts and educate consumers about the availability and benefits of CFE-certified MI Open Accounts.”