Youth Savings Pilot Program - Phase II
Phase II: How to Participate
The FDIC welcomed FDIC-insured institutions to express their interest in participating in Phase II of the FDIC Youth Savings Pilot Program. The expression of interest period closed on June 18, 2015.
We will contact those who expressed an interest by August 7, 2015 to let them know whether they were selected for the pilot.
Minimum Qualifications to Participate
Institutions must meet the following minimum criteria to participate in the Pilot:
- The institution must be an FDIC-insured bank that is working with a school, school district, or other non-profit organization that serves youth under age 18 to carry out a program during the 2015-2016 school year whereby young people could open a savings account at the FDIC-insured institution.
- This program must be either:
- A new program, or
- An existing program that is expanded or modified in a way designed to increase participation (for example, by operating in a new location, with an additional partner, or with a new age group)
- The youth who are obtaining banking services through the program should receive financial education either through the bank’s efforts or as part of the school’s curriculum.
- The FDIC-insured institution must have been in operation for more than three years;
- The FDIC-insured institution should currently have a CRA rating of Satisfactory or better, and a composite “1” or “2” rating on its most recent Safety and Soundness and Compliance examinations, but a “3” rated institution may be considered on a case by case basis.
The FDIC expects to select banks based on a variety of approaches for accomplishing the objective of helping young people access savings accounts. In particular, the FDIC will place particular emphasis on the following elements when selecting the qualifying institutions to participate in the Pilot:
- The degree to which savings accounts offered through the Pilot meet the essential criteria of the FDIC Model Safe Accounts Template, particularly as it relates to the minimum amount needed to open deposit accounts.
- The degree to which the program is focused on youth from families that are more likely to be unbanked, underbanked, or low- or moderate-income (to the extent that the data are available).
- Approaches that encourage or otherwise reward positive savings by young people.
- A customer onboarding process that presents minimal barriers to opening accounts for young people yet is consistent with regulatory expectations.
- The degree to which relevant and timely financial education is delivered to youth participating in the program.