More Americans Have Bank Accounts, FDIC Says
The percentage of Americans who do not have a bank account fell to an all-time high last year, the Federal Deposit Insurance Corp. said on Tuesday, a sign that the economic situation of the country’s most vulnerable people continues to deteriorate. improve.
In 2017, about 6.5% of U.S. households did not have a primary bank account. This is down from 7% in 2015 and a peak of 8.2% in 2011. This translates to around 14.1 million adults without a bank account.
Not having a bank account, also known as “unbanked,” can make everyday life more difficult. Saving money in a secure place becomes more difficult, doing any sort of transaction online is nearly impossible, and everyday bills have to be paid by expensive check tellers over and over again. Without a bank account, it is also impossible to use other financial services like paying with credit cards, buying a house, or even taking out a payday loan.
The reasons for not having a bank account have remained stable compared to previous surveys, with “not having enough money” being the number one reason for doing so. Another common reason not to be banked was not trusting banks.
The greatest improvement occurred among black and Hispanic households. The number of black households without a bank account fell to 16.9% last year, according to the FDIC, while 14% of Hispanic households did not have a bank account. Those numbers are down from more than 20% of black households and 18% of Hispanic households in 2013.
Even though the FDIC investigation showed noticeable improvements, there were still places that showed that many Americans are struggling to access basic financial needs.
About 19% of U.S. households are considered by the FDIC to be “underbanked,” meaning they have a primary bank account but use non-traditional financial services like pawn shops, payday loans, and auto securities. , check tellers and money transfer services. Additionally, one in five Americans is known as “invisible credit,” which means they had some sort of traditional credit history, making it difficult to apply for a credit card and get a credit card. mortgage.