About 9 Million Households Don’t Have Bank Accounts

A recent survey by the Federal Deposit Insurance Corp. (FDIC) found that about 9 million U.S. households (7.7%) don’t have a savings or checking account.

The survey also found that 17.9%, or 21 million households, are underbanked, which means they have bank accounts but regularly rely on alternative financial services such as payday lenders.

People who are underbanked have used nonbank money orders, check-cashing services, pawn shops, or rent-to-own agreements at least once or twice a year. They also have used refund anticipation loans at least once over the past five years.

Certain racial and ethnic populations are more likely not to have savings or checking accounts, or to be underbanked, according to the study. According to the survey, approximately 21.7% of African-Americans, 19.3% of Hispanics, 15.6% of American Indian/Alaskans, 3.5% of Asians, and 3.3% of Caucasians are unbanked.

The survey also found that 31.6% of African-Americans, 28.9% of American Indians/Alaskans, and 24% of Hispanics are underbanked.

The South has the highest percentage of people who are unbanked and underbanked. Not surprisingly, the lower a household’s income, the more likely it is to be without bank accounts. Households with an income of $30,000 or less make up 71% of unbanked households.

People who are younger and with less education are also more likely not to have bank accounts.

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