Underbanked in America
The Federal Deposit Insurance Corporation released findings from its National Survey of Unbanked and Underbanked Households. According to the study, more than 25%of all US households are unbanked or underbanked. Most of those households are low-income and/or minority.
Unbanked households do not have anyone in the house that has a checking or savings account. Underbanked households may have checking or savings accounts but rely on other financial services such as nonbank money orders, nonbank check-cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year.
Of the surveyed households surveyed, 7.7%, or 9 million households, were unbanked. Another17.9%, or 21 million households, was underbanked.
Minorities likely to be unbanked include blacks, at 21.7% black households and Hispanics at 19.3%. American Indian/Alaskans account for 15.6%. Least likely to be unbanked are Asians at 3.5% and whites at 3.3%.
Households with income under $30,000 account for at least 71% of unbanked households. Nearly 20% of lower-income U.S. households, or almost 7 million households, earn below $30,000 per year and do not have a bank account. Only 4.2 % of households with annual income between $30,000 and $50,000 and less than 1 percent of households with yearly income of $75,000 or higher are underbanked.
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