If you’ve faced challenges opening a traditional bank account due to past financial difficulties, second chance banks in Louisiana provide a crucial opportunity to rebuild your banking history and regain financial stability.
Many banking institutions in Louisiana offer accounts designed to help you restart your financial journey without the barriers of ChexSystems, Telecheck or Early Warning Services (EWS) records.
With low minimum deposits, no overdraft fees, and access to debit cards and online banking, these second chance banks in Louisiana are committed to helping you take control of your finances and build a stronger future.
Online Second Chance Banks in Louisiana
Upgrade Rewards Checking
$0 minimum to open
Up to 2% cash back on purchases
Get paid up to two days early
More than 55,000 free ATMs
SoFi Bank
$50 minimum deposit
Welcome bonus up to $300
No monthly maintenance fees
Get paid up to two days early
55,000+ fee-free ATMs
Acorns
$25 minimum deposit
Earn 2.57% APY on Checking and 4.05% APY on Emergency Fund
Get paid up to 2 days early
Tungsten metal debit card
55,000+ fee-free ATMs
Current Banking
$0 minimum to open
4% APY on savings up to $6,000
Get paid up to two days early
Up to $750 cash advance
Credit building secured card
mph.Bank - Second Chance Fresh Account
$9.00 a month service fee
Zelle® Integration
Get paid up to two days earlier
55,000+ free AllPoint ATMs
Second Chance Banks in Louisiana
Alive Credit Union
The Simply Fresh Start Checking account does not require an opening deposit but has a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts..
First Federal Bank of Louisiana
The Smart Access Checking Account requires a $25 opening deposit and has a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Hope Credit Union
The HOPE Choice Card requires does not require an opening deposit but has a $4 monthly service fee. You can load your HOPE Choice Card with unlimited funds without paying for each transaction. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Investar Brilliant Banking
The Brilliant Checking Account requires a $25 opening deposit and has a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Regions Bank
The Regions Now Checking Account requires a $10 opening deposit and has a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Red River Bank
The New Opportunity Checkless Checking Account requires a $25 opening deposit and has a $5 monthly service fee that can be waived with eStatement or direct deposit. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
The First Bank
The First Step Checking Account requires a $15 opening deposit and has a $3 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Sicily Island State Bank
The SISB Bank On Checking Account requires a $25 opening deposit and has a $3 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Woodforest
Woodforest offers a “Second Chance” account. The minimum opening deposit is $25.00. There is a monthly service charge which breaks down as follows:
- $9.95 with direct deposit
- $11.95 without direct deposit
- $9.00 one-time account set up fee.
Why Louisiana Has A High Amount of Unbanked Households
According to a report by the Federal Deposit Insurance Corporation (FDIC) in 2023, around 8.0% of households in Louisiana were considered unbanked.
Louisiana’s rate of unbanked households is relatively high for several reasons:
Poverty. Louisiana has one of the highest poverty rates in the country, which can make it difficult for many households to maintain a bank account or access other financial services.
Rural and low-income residents. Rural and low-income households may live to o far from traditional bank branches and may not have access to reliable transportation to travel to these locations. This can make it challenging to open and maintain a bank account.
Prevalence of alternative financial services. In some areas of Louisiana, payday lenders and check-cashing services outnumber traditional banks. These alternative financial services may be more accessible and convenient for some households, but are typically more expensive and can lead to a cycle of debt.
The high rate of unbanked households in Louisiana is a complex issue that is influenced by a range of economic, social, and geographic factors. Second chance banking options and free online accounts expands access to financial services. The solution must be multi-faceted to include financial education and literacy.
Upgrade Disclaimers
1 Active Accounts with a monthly direct deposit of $1000 are eligible for additional benefits on Rewards Checking Plus such as additional cash back rewards, ATM fee reimbursement, and more. See the Active Account page for more information.
2 Rewards Checking Plus customers who set-up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.
3 The 1.5% Annual Percentage Yield (APY) for the Performance Savings account is effective as of June 1, 2023. The APY for the Performance Savings account is variable and may change at any time. Active Accounts qualify for 5.21% APY with monthly $1000 direct deposit. The APY for Active Accounts is effective as of September 1, 2023, is variable, and may change at any time. Please refer to the applicable Cross River Bank Performance Savings Deposit Account Agreement and Truth in Savings Disclosure. To earn APY, you must open and fund a Performance Savings account. Rewards Checking Plus accounts do not earn APY.
4 Early direct deposit requires set up of recurring electronic direct deposit from your employer, payroll, or benefits provider and is limited to direct deposits under $5000. Early access to direct deposit funds depends on the timing in which we receive notice of impending direct deposit, which is generally up to two days before the scheduled deposit date.
5 There are no overdraft fees or annual fees associated with Rewards Checking Plus accounts. Rewards Checking Plus charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. For Active Accounts, Upgrade will rebate ATM fees charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month on a Rewards Checking Plus account, the account must be an Active Account in the prior calendar month. See the Active Account page for more information. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for 60 days after account opening regardless of account user status. Some limitations apply. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.
Why Alabama Has A High Amount of Unbanked Households
According to a report by the Federal Deposit Insurance Corporation (FDIC) in 2023, around 5.2% of households in Alabama were considered unbanked.
Several factors contribute to this: Low Income and Asset Poverty: Income is the strongest predictor of being unbanked. Households with lower incomes are much less likely to have bank accounts, and Alabama’s asset poverty rate is high at 20.3%. Many residents simply lack the funds to meet banks’ minimum balance requirements Racial and Demographic Disparities: Unbanked rates are notably higher among Black and Hispanic households, who make up a significant portion of Alabama’s population. Rural and Digital Access Barriers: Rural areas in Alabama often have less access to bank branches and reliable internet, making it harder for residents to open and maintain accounts. Financial Literacy Gaps: Lower levels of financial literacy are associated with higher unbanked rates, and this is a challenge in many parts of Alabama. Banking Requirements: Strict identification, credit checks, and minimum deposit requirements can deter people who have had negative banking experiences or lack proper documentation. In summary, Alabama’s high unbanked rate is driven by a combination of economic hardship, demographic disparities, rural and digital access challenges, and restrictive banking practices that make it difficult for many residents to participate in the formal financial system.
