FIL-43-2014
August 4, 2014
FDIC Announces Youth Savings Pilot Program
Summary:
FDIC-insured institutions are invited to apply and participate in the FDIC’s Youth Savings Pilot Program, which seeks to identify and highlight promising approaches to offering financial education tied to the opening of safe, low-cost savings accounts for school-aged children. The first phase of the pilot is open to institutions currently working with schools or nonprofit organizations that help students open savings accounts in conjunction with financial education programs. The second phase is expected to target new programs that begin during the 2015–16 school year. Pilot participants will be connected with other participants and technical assistance resources to develop and share best practices. Upon completion of the pilot, the FDIC intends to publish a report to provide financial institutions with best practices on how to work with schools or other organizations to combine financial education with access to a savings account.
Statement of Applicability to Institutions with Total Assets Less Than $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-insured institutions.
Highlights:
- To introduce students to banking services at an early age, many insured financial institutions collaborate with schools to offer financial education and to establish school-based savings programs. These programs help students learn how to more effectively manage their money, encourage developmental savings habits at a formative age, and promote economic inclusion for entire families.
- The FDIC plans to conduct a two-phase pilot to learn from school-based savings programs and identify promising bank strategies for working with schools or other organizations that combine financial education with access to a savings account.
- The first phase covers programs that will be in place during the 2014–2015 school year. Institutions are invited to participate and apply by August 22, 2014, at http://www.fdic.gov/youthsavingspilot.
- The second phase will take place during the 2015–16 school year. A FIL will be forthcoming in April 2015 inviting institutions to participate in the second phase.
- Learn more at http://www.fdic.gov/youthsavingspilot.