LANSING, Mich. — Governor Gretchen Whitmer, along with the Michigan Open Account Coalition (MOAC), announced a new program designed to increase access to financial services for Michiganders Wednesday.
The new program, MI Open Account Program, offers low-cost bank accounts for Michiganders who are unbanked or underbanked.
“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,” said Gov. Whitmer.
The program works with banks and credit unions within the state to provide accounts with reduced fees and deposit limits to thousands of Michiganders.
“Michiganders deserve access to safe and secure financial services without paying an arm and a leg in hidden fees. MI Open Accounts are certified low- or no-cost bank or credit union accounts with no hidden fees, no overdraft fees, and little to no minimum deposit. These accounts also offer essential financial tools—a debit card, direct deposit, and online bill pay. The MI Open Account Coalition will help unbanked or underbanked Michiganders avoid unexpected costs, build credit, and pay for emergencies by putting more money in their pockets as we keep growing our economy,” Gov. Whitmer added
The MOAC was formed earlier this year by the Michigan Department of Financial Services (DIFS), the Michigan Bankers Association, and Michigan Credit Union League.
The goal of MOAC is to increase accessibility to financial institutions to historically underserved communities. The coalition achieves this goal by partnering with financial institutions to provide low-cost banking for Michiganders and by teaching Michiganders the importance of having a relationship with these institutions.
“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,” said Michigan DIFS Director Anita Fox. “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.”
So far, there are 20 certified MI Open Accounts in Michigan, with many more in the process of certification. A complete list of participating financial institutions is available at Michigan.gov/DIFSOpenAccount.
All MI Open Accounts are certified by the Cities for Financial Empowerment (CFE) Fund, and follow the CFE’s National Account Standards:
- No overdraft, account activation, closure, dormancy, inactivity, and low balance fees
- Limits on ATM fees (no fees in-network; $3 or less out-of-network)
- A limit on minimum opening deposits ($25 or less)
- A limit on monthly maintenance fees ($5 or less)
More information about the Michigan Open Account Coalition is available here.
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