JPMorgan Chase Launches a Low-Fee Checking Account with Free Check Cashing
JPMorgan Chase is rolling out a new checking account targeted at low-income consumers, according to Reuters. Known as Secure, the new account includes debit cards, free check cashing and digital payment services, all for a $4.95 monthly fee.
Secure accounts do not offer overdraft abilities, which is where many banks make a significant profit. Overdraft fees vary by bank, but they are usually around $30 per transaction. Thasunda Duckett, chief executive of Chase Consumer Banking, said the bank will “make money” from Secure accounts, but these accounts will not be as profitable as other services they offer.
These low-fee accounts are considered checkless, which means customers cannot write physical checks for their accounts. They can, however, use their debit card to make purchases, and can cash checks for free. Duckett says most consumers in this category spend $200 to $500 per year on check cashing and money order services.
Chase Secure is similar to the bank’s Liquid prepaid card, which also has a $4.95 monthly fee. However, the prepaid card does not have all the functions of a debit card, and it requires ATM fees.