FiSCA Reports Record $3.7 Million Deposited into 'Virtual Savings Accounts' Through National Savings Program

HACKENSACK, N.J., March 4 /PRNewswire/ -- Financial Service Centers of America (FiSCA), the national trade association representing non-bank neighborhood financial service providers across the country, today announced that customers participating in its National Savings Program deposited $3.7 million into their savings accounts in January 2008, a 17% increase from the previous high of February 2007. The National Savings Program was developed in partnership with NetSpend Corporation of Austin, Texas, and offers a no-fee, FDIC-insured savings account linked to NetSpend's All-Access Visa Prepaid Card. The savings accounts currently earn interest at a 5% rate, significantly higher than most banks or credit unions are offering today.

"While some of our customers maintain bank accounts, many are part of the large portion of the population that is 'unbanked,'" said Bill Siegel, Chairman, FiSCA Savings Program Committee. "They use our locations to cash checks, wire money, make bill payments, obtain small dollar loans and more. We partnered with NetSpend to create this program so that these customers would have a way of saving for the future that fit into the framework of the financial transactions they currently do at our stores. The results announced today clearly illustrate the desire among these unbanked consumers for a savings option. We are delighted that so many have chosen to immediately deposit their tax refunds into this safe, secure, interest bearing savings vehicle."

Since its inception, almost 91,000 FiSCA customers have opened "virtual" savings accounts through the National Savings Program, a first-of-its-kind program which allows customers to easily transfer money back and forth between the debit card and their savings account. The savings accounts require no minimum balance and carry no fees. The National Savings Program is available to consumers exclusively through FiSCA-member locations.

The National Savings Program is one component of the FiSCA Consumer Empowerment Program, a comprehensive collection of services designed to provide FiSCA customers with financial services that may otherwise be unavailable or unaffordable to them. "The National Savings Program illustrates our ongoing and innovative commitment to economic inclusion for all Americans," said Joseph Coleman, Chairman of FiSCA. "It was designed to give consumers access to a superior savings opportunity whether they use banks or not. Now in its third year, FiSCA remains the only organization offering such a program in the United States today."

In addition to the National Savings Program, other elements of FiSCA's Consumer Empowerment Program include the PRBC (Payment Reporting Builds Credit) Credit File Building Initiative in which FiSCA members can offer the Payment Reporting Builds Credit(R) service to their customers. PRBC is a consumer reporting agency and repository that enables consumers and small businesses to build a credit file and score, based on their history of making rent, utility, phone, and other recurring bill payments that can be used to demonstrate creditworthiness. The third element of FiSCA's Consumer Empowerment Initiative is a financial education program, customized to reach and meet the actual needs of financial service center customers. Together, these programs help low- to moderate-income consumers better manage their daily finances.

About FiSCA

Founded in 1987, FiSCA is the national trade association for more than 6,500 individual financial service centers across the United States. FiSCA member locations are used by more than 15 million customers who conduct more than 350 million transactions annually. The financial services provided by FiSCA members include check cashing, money orders, money transfers, and electronic bill payment services, automatic teller machine access, government benefit and payroll payments, small dollar short-term loans, electronic tax preparation, prepaid debit cards, deposit acceptance services, public transportation fare and token sales, motor vehicle license plate and title distribution, postage stamp sales and numerous other services. For more information, please visit www.fisca.org.