One Size Doesn’t Fit All: A Better Way to Bank

By Jenna Bryant and Marquita Robertson

Imagine walking into a store where every dress is labeled “one size fits all.” No tailoring, no adjustments—just one option for everyone, regardless of your shape, needs, or circumstances. Then, when you reach the register, the price jumps: $70 instead of $45—because of where you live or how little you earn.

Same dress. Same fabric. Same rigid, universal fit. But hidden costs appear—layered on top of a product that never fit in the first place.

That’s exactly what our financial system does to millions of Americans.

Banking, in theory, is designed to treat everyone the same. In practice, each person has unique financial needs and challenges—and those differences directly impact the true cost of banking. Features that benefit some consumers can be burdensome—or even predatory—for others. For people living paycheck to paycheck, or those who are unbanked or underserved, the cost of simply trying to “fit” into the system can be far too high.

A recent Federal Reserve study confirms what many have long known: the cost of a basic checking account is often higher in low- and moderate-income (LMI) neighborhoods. In these areas, banks typically require minimum balances that are $45 higher just to avoid monthly fees. For many families, that means paying for a service others receive for free.

This isn’t a minor inconvenience—it’s a structural barrier. One that keeps people out of the system or penalizes them when they try to participate.

More than 30 million Americans are unbanked or underbanked—not because they don’t want financial services, but because those services weren’t built with them in mind. They’re priced out. Mismatched. Made invisible by a system that offers only one kind of financial “fit”—and charges more when it doesn’t work.

Consider this: in 2022, the median checking account balance for households in the bottom income quintile was $300.  Yet many financial institutions require a $1,500 minimum balance to avoid monthly fees. Falling below that threshold can trigger charges that drain $100 or more annually—money that could have paid for groceries, medication, or a utility bill. In 2021 alone, LMI households paid $1.4 billion of the $2.5 billion U.S. banks collected in maintenance fees on checking and savings accounts.

But the impact isn’t only financial. Without access to fair and affordable banking, people miss out on the tools that build credit, grow savings, and create pathways to wealth. That means fewer opportunities for homeownership, entrepreneurship, or economic mobility—for themselves and future generations. A household without a secure financial foundation is less likely to break the cycle of poverty and more likely to pass it on.

At MDC and The Collaborative, we believe it doesn’t have to be this way. A fair financial system should offer accounts people can wear with pride—banking options that fit their income, lifestyle, and goals. And importantly, some financial institutions are already stepping up. Through efforts like the Bank On movement, many banks and credit unions are working to redesign products and remove barriers so more people can safely and affordably participate in the financial mainstream.

Here’s how we’re making that happen:

• Expanding access to Bank On certified accounts through Bank On North Carolina, which connects people to safe, affordable accounts with no overdraft fees, low costs, and essential features like direct deposit. These accounts are offered by banks committed to financial inclusion and help address the barriers many unbanked and underserved consumers face.
•  Supporting public and nonprofit institutions in encouraging direct deposit into accounts that match the lives of those they serve—paired with services like financial coaching, workforce development, and public benefits access.
• Advocating for transparency and fairness in how financial institutions communicate, so people know exactly what they’re signing up for—no hidden fees, no fine print, no surprises.

Because let’s be clear: this isn’t just a technical problem. It’s a moral one.

When communities with less pay more to banks, it reinforces the very disparities banks are working to close. That’s why banks and credit unions have joined the movement to provide banking options for vulnerable consumers—and are creating tools that help them build more.

A basic checking account shouldn’t cost someone a week’s worth of groceries. It should be a bridge to stability and opportunity—not a barrier.

We all deserve an account that fits. It’s time to stop asking people to pay more for the same dress—and start building a financial system that honors everyone’s dignity and unlocks the full possibility of their lives.

Jenna Bryant is a Senior Program Director for Economic Security and Mobility at MDC, a nonprofit that works to advance equity and economic opportunity across the South.

Marquita Robertson is Executive Director of The Collaborative, which leads Bank On North Carolina and promotes financial inclusion through partnerships with banks, credit unions, and community-based organizations.