Interagency Guidance to Encourage Financial Institution Youth Savings Programs and Address Related Frequently Asked Questions

NONPUBLIC//FDIC BUSINESS

Federal Deposit Insurance Corporation

550 17th Street NW, Washington, D.C. 20429-9990

Financial Institution Letter

FIL-11-2015

February 24, 2015

Interagency Guidance to Encourage Financial Institution Youth Savings Programs and

Address Related Frequently Asked Questions

Summary: The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance

Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the

Currency (OCC) (collectively, the agencies), as members of the Financial Literacy and Education Commission

(FLEC), together with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), are

issuing guidance related to youth savings programs. The guidance uses the term “financial institution” or

“institution” to refer to all federally insured depository institutions.

Statement of Applicability to Institutions with Total Assets Less Than $1 Billion: This Financial Institution

Letter applies to all FDIC-supervised institutions.

Distribution:

FDIC-Supervised Institutions

Highlights:

•

The guidance is intended to encourage financial institutions to

develop and implement programs to expand the financial

capability of youth and build opportunities for financial

inclusion for more families. It also addresses frequently asked

questions that may arise as financial institutions collaborate

with schools, local and state governments, nonprofits, or

corporate entities to facilitate youth savings and financial

education programs.

•

Many federally insured financial institutions collaborate with

schools or other partners to establish youth savings programs

that help students open and manage savings accounts. These

programs are intended to help young people learn savings

habits early and are generally linked to a financial education

program. Some research also suggests that experiential

learning approaches such as these can positively influence

youth long term

tions collaborate with

schools or other partners to establish youth savings programs

that help students open and manage savings accounts. These

programs are intended to help young people learn savings

habits early and are generally linked to a financial education

program. Some research also suggests that experiential

learning approaches such as these can positively influence

youth long term.

•

This effort, which is consistent with the FLEC’s National

Strategy for Financial Literacy, was not intended to create new

industry expectations but rather to clarify how existing

guidelines apply in a way that would remove perceived

regulatory barriers.

Suggested Routing:

Chief Executive Officer

CRA Officer

Contact:

Luke W. Reynolds, Chief, Outreach and Program

Development, Division of Depositor and Consumer

Protection, at

lureynolds@fdic.gov or (202) 898-7164

Bobbie Gray, Supervisory Community Affairs

Specialist, Outreach and Program Development,

Division of Depositor and Consumer Protection, at

bgray@fdic.gov or (202) 898-7148

Attachment:

Youth Savings Guidance

Note:

FDIC Financial Institution Letters (FILs) may be

accessed from the FDIC's Web site at

https://www.fdic.gov/news/news/financial/2015/.

To receive FILs electronically, please visit

http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC's

Public Information Center, 3501 Fairfax Drive, E-

1002, Arlington, VA 22226 (877-275-3342 or 703-

562-2200).