New program encourages low-income L.A. residents to open bank accounts

Immigrants are often afraid banks will keep their money, so they keep it at home or in their pocket. They have to pay very high fees when paying their bills and cashing paychecks. This program is helping them learn about banking. - - Donna Poisl

The initiative aims to help 10,000 people end their dependence on check-cashing outlets before the end of the year by reducing the cost and simplifying the process of banking.

By Alexandra Zavis

Juan Murillo used to spend hundreds of dollars a year at check-cashing outlets because he was too intimidated by the U.S. banking system to open an account and did not speak enough English to write a check himself.

When he finally summoned the courage to open a checking account at Bank of America, he found that he could withdraw cash, write checks and transfer money to his family in Mexico at no additional cost. And the best part, he said, is that "my tax refund is deposited directly into my account."
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