Walmart Unveils 'GoBank' Checking Account: Should You Get One? Benefits Explained

After years of failed efforts to break into banking, Walmart is introducing mobile checking accounts for its customers with some potentially beneficial elements that could separate it from a traditional bank account. The new service will be known as GoBank.

GoBank Benefits

The world's largest retailer is teaming up with Green Dot, a company associated with pre-paid payment cards, to supply checking accounts to over-18-year-olds by the end of October. 

Walmart has made one of the most intriguing notions of this known in this announcement: in an effort to be a low-cost alternative to the familiar bank checking accounts, there will be no fees for overdrafts or bounced checks. There will also be no minimum account balance.

Additionally, the account costs $8.95 a month to set up, but this fee will be waived if a direct deposit of $500 is made every month.

The market giant is clearly trying to pave the way for those that have lesser income or poorer economic standing. Credit bureau ratings and the other similar ratings will not be a part of Walmart's new checking business, the company also said. According to Daniel Eckert, senior vice president at Walmart, most people on Social Security or fixed pensions will qualify for GoBank.

Other retailers like Target and 7-Eleven have also begun to offer prepaid cards. Where GoBank differs is that it is the first fully realized checking account ever offered by a retailer like Walmart.

The new service is a part of Walmart's hopeful answer to some 10 million households (according to the Federal Deposit Insurance Corporation) that do not use or have no access to traditional banking. In addition many banks have reduced services to those with weak credit in recent years, further turning away potential customers.

Credit and debit transactions are practically a necessity of the modern consumer market.  This has forced many to look for costly alternatives for basic transactions, which quickly add up making saving more difficult.

In order to attract those customers to begin an account with the company, Walmart and Green Dot will not have extensive screening systems used by banks. In its place will be a proprietary system that allows anyone who is of the proper age to pass an identification check to open an account in minutes.

This is only the latest in Walmart's attempts to enter the financial services market, though they have been eyeing the market for some time. American Express partnered with Walmart two years ago to offer a prepaid card and debit accounts to its customers.