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**FOR IMMEDIATE RELEASE**
April 14, 2008
Contact: Sarah Krauss
(212) 669-4193; (917) 541-0936
Release #: 013-2008
Public Advocate Gotbaum Releases Bilingual Banking Guide to Help New Yorkers Manage Their Money
In time for tax day, the Public Advocate urges New Yorkers to open bank accounts to avoid fees and help save money
QUEENS – Standing in front of Queensbridge Houses today, Public Advocate Betsy Gotbaum, along with Community Service Society (CSS) of New York released a Guide to Banking in New York City, a nine-page, how-to guide on personal banking. The guide encourages New Yorkers to open bank accounts in order to increase their short and long-term savings.
Public Advocate Gotbaum said, “For New Yorkers who are struggling to make ends meet, having a bank account can make the difference in achieving financial stability. This guide helps New Yorkers at a time when we desperately need to get the most out of the money we earn.”
With countless New Yorkers set to receive their tax returns and Earned Income Tax Credit (EITC), as well as economic stimulus rebate checks, many will be considering how to put their refunds to good use. For those receiving the EITC - a federal, state and city tax credit for low-to-moderate income working families and individuals - they can have that money put directly into an account, earn interest, and avoid fees from check cashing centers or Refund Anticipation Loans (RAL). This guide is intended to help New Yorkers:
• Understand the benefits of banks
• Learn about different types of banks, including on-line banks
• Open checking and savings accounts
• Learn more about services like international wire transfers, money orders & overdraft protection
Instead of using check cashing centers as some New Yorkers do, banks allow people to pay less money in fees and save money at the same time as well as earn interest on the money they save. Some check cashing centers require as much as $1.70 for every $100. A person getting paid $16,000 a year could end up paying a check cashing center $272 a year to cash their paycheck
“Financial literacy is essential in today’s economy where many individuals and families are suffering multiple hardships based on financial constraints,” commented David R. Jones, president and CEO of the Community Service Society (CSS). “According to the “Unheard Third” - our annual survey of low-income New Yorkers - city residents, particularly African Americans and Latinos, are less likely to use banking services. It is important to begin to educate low-income New Yorkers of the benefits of sound financial planning – even for those of little financial means.”
The Public Advocate and CSS were joined by the East River Development Alliance (ERDA), a non-profit organization working to expand economic opportunities for public housing residents in Western Queens. ERDA helps families to achieve their short and long term financial goals, ranging from opening up a bank account, repairing credit, building emergency savings, sending a child to college or buying a home, through customized one-on-one financial counseling, group workshops, and money management classes. ERDA has provided these financial literacy services to over 600 New Yorkers and has helped return over four million dollars in tax refunds to neighborhood residents. ERDA conducted a survey that found that more than 30% of Queensbridge Houses residents do not have a bank account and the majority of those that do still use costly check cashing services.
“I want to thank the Community Service Society and the Public Advocate for their work in creating this valuable Banking Guide. So often the banking experience is an intimidating task. People know that they need to open a bank account and even want to, but are often discouraged by complex marketing practices. This guide demystifies that process. I encourage New Yorkers to use this guide when choosing a bank and opening a bank account to ensure that they ask all the right questions,” said Bishop Mitchell Taylor, Founder and President of ERDA.
To help individuals choose the bank that meets their needs, the Office of the Public Advocate looked at more than 100 types of accounts in 38 banks and 7 credit unions and compared fees for regular checking, interest checking, savings, and basic banking accounts. The Public Advocate’s ratings of New York City banks are available on her website at http://pubadvocate.nyc.gov/.
The Guide to Banking in New York City will be in both English and Spanish. If New York City residents have any problems with their bank or need any more information on banking, they can contact the Public Advocate’s office at 212-669-7250 to ask questions or request a copy of the guide.
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