Boston, MA – This year marks the 30th anniversary of what was likely the nation’s first voluntary statewide low-cost checking and savings program. Basic Banking for Massachusetts is still going strong with fifty-eight banks and credit unions, ranging from small community banks to large regional and national institutions offering certified accounts to consumers in Massachusetts according to an update provided by the Partnership for Financial Equity.

Basic Banking for Massachusetts was launched in 1994 as a product of our Banking Services Committee to expand access to bank products and services and to encourage those with modest incomes to establish banking relationships.  Banks participating in Basic Banking for Massachusetts voluntarily provide low-cost checking and savings accounts that meet the guidelines below.

At the 2024 Financial Equity Summit on October 2 in Worcester, community leaders and bankers will celebrate the program’s anniversary and discuss the future of reaching unbanked and underbanked households. Register for the Summit here. Our Banking Services Committee is co-chaired by Jason Andrade, Director of Financial Services, Compass Working Capital and Lena Buteau, Vice President, Retail Administration Officer, Monson Savings Bank.

Basic Checking Account Guidelines

• Requires no more than $25.00 to open the account
• Charges no monthly fee
• Provides unlimited free withdrawals

Basic Savings Account Guidelines

• Requires no more than 10.00 to open the account
• Charges no monthly fee on account balances of 10.00 or more
• Charges a monthly fee of no more than $1.00
• Pays interest on all account balances of 10.00 or more

Basic Banking accounts cannot be conditional, e.g. limited to those who open both a checking and savings account or to those with Direct Deposit.

To help meet the goals of Basic Banking for Massachusetts, Partnership for Financial Equity also recommends that participating banks adopt the following procedures:

• Under Basic Banking for Massachusetts, it is expected that participating banks will use their customary account opening guidelines.  However, banks are strongly encouraged to exercise flexibility by accepting alternative forms of identification.
• Banks should fully disclose all services counted as a checking account withdrawal.
• It is expected that participating banks will use controls to assure that an applicant has not had prior difficulties with deposit account(s).
• Both the basic checking and savings accounts should only be closed for the same reasons that other accounts are closed.

Persons with a basic checking or savings account should not be limited exclusively to ATMs or any form of non-teller related services.