Economic inclusion is all consumers having direct access to safe and affordable financial-based services and products. The first step towards achieving economic inclusion is becoming an owner of a transaction account. These are available at insured institutions that offer depositories to consumers. At these institutions, consumers may safely retain their deposits, engage in various types of financial transactions, and accumulate funds in savings.
Why is Economic Inclusion Important?
The basis of economic inclusion is to provide opportunities for individuals to have access to both affordable and safe bank accounts that are insured. It helps consumers build assets, save money, and maintain an ideal level of financial stability. It provides a way for consumers to receive financial education.
Why is Financial Education Important?
By engaging in financial inclusion with an insured bank, consumers receive an effective means of education – in terms of financing. This is important because of the fact that it helps consumers gain both skills and confidence in their bank relationships. It also assists in achieving financial goals and improving overall financial well-being.
By having a relationship with a bank, consumers can accumulate savings, and establish credi to achieve goals – like buying a home or a car. To participate in the bank system, a consumer is required to esablish this relationship by first creating an account and building from there.
What is FDIC Money Smart?
FDIC Money Smart is an educational program designed to help consumers with their finances. It was established in 2001 and continues strong today. It includes a wide variety of resources to help consumers. These include articles, guides, podcasts, resources for parents, and even engaging games. All of the information with the program is free, not copyrighted, and includes high-quality information. It is perfect for people of all ages.
What is an Insured Deposit?
A significant aspect of economic inclusion is insured deposit accounts provided to consumers. These are accounts that are insured by the FDIC. This insurance – in short – protects your money within an insured institution in case that institution fails.
In today’s world, you may find insured deposit accounts that include only low fees. Additionally, many have no overdraft fees or non-sufficient funds fees. Additionally, most insured deposit accounts allow you to use ATMs, mobile banking, and online banking services at no cost. If you have an interest in initiating your banking relationship, contact us here at Somerville Bank today.
Can Banks Help Improve Credit Scores?
Yes, banks are capable of helping consumers improve their credit scores. This is achieved in many different ways. Examples include offering tools to help build credit, financial advice, issuing loans that help build credit during the payoff process and offering bank-issued credit cards and similar perks. Examples of other products that aid in economic inclusion and the accumulation of good credit include asset-building programs, remittance products, and programs that promote financial awareness.
What are the Benefits of Having a Bank Account?
There are numerous benefits to having a bank account when it comes to economic inclusion. These include the following:
- First, if you create an account at an institution that is identified as a federally insured depository, the money that you place in that account is covered by the FDIC insurance and other forms of protections.
- Your account provides a place where you may safely keep your money.
- The account will help you to accumulate a large amount of money. This may be used towards your long-terms goals or needs and for emergencies.
- Having a bank account will help you pinpoint what you spend and how you spend it.
- By evaluating your banking transactions, you will be capable of creating a budget.
- By having a bank account, you are positively contributing to your credit history.
- A bank account is a necessity if you plan on taking out a loan in the future.
- You are more likely to receive future credit offers with a bank account that you use in a responsible manner.
- Having a bank account opens up new opportunities – such as having ATM usage access, access to your credit score, mobile banking, and online banking services.
- A bank account provides a simple way to ensure your money is kept in one place, you are able to access it easily, and protect it.
Why is Inclusion Important in Economic Development?
Economic inclusion is a means of providing tools, resources, and other items of interest to consumers so that they may develop a solid financial strategy for their life. Some areas in the United States actually develop inclusion programs that help to provide equity and individual levels of ownership to consumers. This helps all in a certain area to share in the financial success of that region. While most associated with banking products, financial or economic inclusion reaches out to other areas and programs, too. In short, it aids with a consumer’s financial success – regardless of race, age, religion, and other criteria.
Does Economic Inclusion Include Small Business Owners?
Yes, economic inclusion does have tools and resources available for small business owners. These were created in conjunction with the Small Business Administration (SBA). The training is absolutely free. The purpose is to ensure that entrepreneurs become or transition to being “bankable”. It helps owners with getting an affordable bank account, having access to credit and loan options that are affordable, and financial resources.
Contact Us Today
We here at Somerville Bank specialize in placing an emphasis on economic inclusion for all – be it a consumer or a small business owner. We offer a multitude of services and accounts to meet your needs. Our employees work closely with every account holder to ensure that they have the tools and resources necessary to achieve financial success. Since opening in the year of 1910, we have served as advocates and advisors for each client that we serve. We have a mission to provide low-cost provider of financial products and services and to support community services that enhance the quality of life for all. For more information, visit one of our many locations today!