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Banker & Tradesman file photo
Amid the call to banks to offer bank accounts that could help low-income households, Santander Bank has started offering a consumer checking account to serve the underbanked and help them achieve their financial goals.
Santander said the “essential checking” account removes the risk of over-drafting funds or being charged associated fees for consumers. It eliminates overdrafts and a $4 monthly fee that is automatically waived if any owner on the account is under 26 or at least 65 years old.
It also reduced fees of $2 for paper statements, $2.50 for domestic non-Santander ATM withdrawals, and a 50 percent discount on Santander exclusive checks.
The checking account meets the Bank On national standards by the Cities for Financial Empowerment Fund, which provides product guidelines to meet the needs of low-income consumers who are classified as underbanked or unbanked. Bank On measures if an account meets over 25 features for customers who are looking to improve their finances, and access and manage their money.
“At Santander, we are consistently adapting our offerings to create a seamless and simple banking experience for our customers,” Patrick Smith, head of consumer and business banking at Santander, said in a statement. “The introduction of our Essential Checking account marks another exciting milestone in our ongoing work to best serve our customers and provide various options that are tailored to support them at every stage in life.”
Santander said it also improved its other checking and savings accounts for consumers who are under 26 years of age. For its Simply Right checking account, the bank waived the monthly fee, reduced the cash withdrawal fee of $2 at domestic non-Santander ATMs, and removed the incoming wires fee. It also waived monthly fee and have zero cash withdrawal fee at domestic non-Santander ATMs for its savings account.
“We are committed to constantly reviewing and updating our product mix to meet our customers where they are,” Smith said. “They’re at the center of everything we do.”
Santander said the checking account and upgrades to their current account offerings are part of its three-year Santander US Community Plan which seeks to put $4.6 billion in community reinvestment and $9 billion in sustainable finance across the bank’s businesses in the US.
