Lifeline Account

AAA

DEFINITION of 'Lifeline Account'

A streamlined checking or savings account designed for low-income customers. These accounts will usually have low balance requirements and no monthly fees, and are offered by large banking institutions as a way to offer basic banking services to the broad public. Some states mandate that lifeline accounts be available within the state.

Basic features such as check writing will be available, but will typically be limited by a monthly quota. Other electronic services may also be limited unless the account holder pays additional fees.

INVESTOPEDIA EXPLAINS 'Lifeline Account'

Lifeline accounts aim to bring all members of a society into the economy by encouraging saving and long-term investing. Low-income citizens are often ignored in the economy because they don't have a lot of disposable income, but by fostering their long-term financial health, they can become bigger contributors down the road.


RELATED TERMS
  1. Checking Account

    A transactional deposit account held at a financial institution ...
  2. Regressive Tax

    A tax that takes a larger percentage from low-income people than ...
  3. Microfinance

    A type of banking service that is provided to unemployed or low-income ...
  4. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  5. Microsavings

    A branch of microfinance, consisting of a small deposit account ...
  6. Account Minimum

    The minimum balance required to be maintained in an investment ...
Related Articles
  1. Credit & Loans

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  2. Entrepreneurship

    Microfinance: What It Is And How To Get Involved

    This growing industry is full of opportunities for the socially conscious investor.
  3. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  4. You need to be patient, diligent and perseverant to be successful at investing, but more importantly, you need to start early.
    Investing Basics

    Why You Should Start Investing Early?

    You need to be patient, diligent and perseverant to be successful at investing, but more importantly, you need to start early.
  5. Retirement

    Planning Ahead for 2015's Tax Law Changes

    Increased 401(k) limits can help savers put away more money for retirement in 2015—but some new restrictions are coming for IRAs.
  6. Savings

    What Canadian banks offer the best savings accounts?

    Learn about different savings accounts in Canada. Explore different interest rates and fees as well as accounts that are protected by the CDIC.
  7. Savings

    What US banks offer the best savings accounts?

    Explore the best savings accounts offered by national banks comparing annual yield and other factors. Learn why the highest-yield accounts are offered online.
  8. Budgeting

    What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national banks.
  9. Is your idea of a budget simply spending till your checking account is nearly empty? Or worse, till your credit limit is exhausted?
    Budgeting

    What's Your Idea Of Budgeting?

    Is your idea of a budget simply spending till your checking account is nearly empty? Or worse, till your credit limit is exhausted?
  10. A new poll finds what financial tools Americans are most thankful for -- both sexes say the product they value most is the venerable savings accounts.
    Savings

    Giving Financial Thanks In Thanksgiving Day

    A new poll finds in what financial tools Americans are most thankful for -- both sexes say the product they value most is the venerable savings accounts.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center