Walmart today announced that it has joined hands with Green Dot Corp to launch a checking account service that will be linked to a MasterCard debit card and will simplify fees paid by customers.
The service named GoBank will be available at Walmart stores by the end of October and it will charge $8.95 a month. The fee will be waived if customers consent to a monthly direct deposit of $500. Other fees that are associated with "free" checking accounts at commercial banks - for overdraft, not maintaining a minimum balance or writing bad checks - are waived.
The new service will also allow the customers can also use a network of 42,000 ATMs without paying withdrawal fees.
"GoBank is breaking down the barriers to traditional banking and brings the benefits of a FDIC-insured checking account that's loaded with features to a large segment of Americans," says Steve Streit, founder and CEO of Green Dot Corp.
In recent years, Walmart has expanded its in-store services by adding health care clinics, tax services and money transfers. The company is now eyeing to expand its business in financial and banking-related services for budget-minded customers that sought to avoid fees and credit checks.
The new service is aimed at customers who are unable to land traditional bank accounts due to low credit ratings and others financial issues.
"GoBank gives our customers yet another option as to how they manage their money," says Daniel Eckert, senior vice president of services for Walmart U.S., in a statement.
Walmart and Green Dot said that Bretton Woods has estimated after an independent study that consumers pay about $218 to $314 a year for a basic checking account.
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