A small portion of the American population has no bank accounts of any type, a group called the "unbanked" in the literature addressing them. Their ranks are increasing as well, as an FDIC study has found more than 800,000 people have gone bank-less since the last time they investigated it.
10 million have no bank account
Many people assume that a banking account is a necessary thing to have to live in the country. Still, that is not totally true since there really are a number of people who do all their business in cash. These people get paid and cash and use it for all their purchases.
In the past, there have been a ton of mistakes made by the financial system in the country, and that is why many people are just completely against the system. They only keep away from a banking account because they are avoiding the system.
About 10 million people fall into this class, called "unbanked," and the group is increasing, according to CNN.
FDIC study finds ranks growing
The unbanked and underbanked, or people who use check cashers and payday loans rather than banks, were both looked at in a Federal Deposit Insurance Corporation study in 2009.
In that survey, 7.7 percent of households in the United States held no accounts, roughly 9 million people. An update to the outcomes of that survey, performed in 2011, found it had increased to 8.2 percent. Roughly 10 million households or 17 million adults lack any banking account, an increase, according to Businessweek, of 821,000 people.
About 88.5 percent of people in the country have a checking account while 69.2 percent have a savings account, according to Fox Business. A number of people use other providers to have their accounts though.
Considering reasons
Of the unbanked in the FDIC survey, 33 percent said they could not maintain a bank account because they did not have enough cash coming in all the time, 21 percent said they did not need the account, 7.7 percent said they did not want to actually have to go to the bank, and 5.4 percent said that they could not afford minimum balances or extra fees, according to CNN.
About 6.4 percent of people said that they had too many overdraft charges and got their account closed while 6.6 percent said they had a negative history with banks or did not have identification to open an account.
Alternative financial services were found to be how the unbanked are able to get by. 59 percent had used pawn shops, payday lenders or check cashers within the past year, according to Fox Business, and 12 percent had done so in the previous 30 days of the survey. Prepaid cards were used by 18 percent of unbanked respondents.
10 million have no bank account
Many people assume that a banking account is a necessary thing to have to live in the country. Still, that is not totally true since there really are a number of people who do all their business in cash. These people get paid and cash and use it for all their purchases.
In the past, there have been a ton of mistakes made by the financial system in the country, and that is why many people are just completely against the system. They only keep away from a banking account because they are avoiding the system.
About 10 million people fall into this class, called "unbanked," and the group is increasing, according to CNN.
FDIC study finds ranks growing
The unbanked and underbanked, or people who use check cashers and payday loans rather than banks, were both looked at in a Federal Deposit Insurance Corporation study in 2009.
In that survey, 7.7 percent of households in the United States held no accounts, roughly 9 million people. An update to the outcomes of that survey, performed in 2011, found it had increased to 8.2 percent. Roughly 10 million households or 17 million adults lack any banking account, an increase, according to Businessweek, of 821,000 people.
About 88.5 percent of people in the country have a checking account while 69.2 percent have a savings account, according to Fox Business. A number of people use other providers to have their accounts though.
Considering reasons
Of the unbanked in the FDIC survey, 33 percent said they could not maintain a bank account because they did not have enough cash coming in all the time, 21 percent said they did not need the account, 7.7 percent said they did not want to actually have to go to the bank, and 5.4 percent said that they could not afford minimum balances or extra fees, according to CNN.
About 6.4 percent of people said that they had too many overdraft charges and got their account closed while 6.6 percent said they had a negative history with banks or did not have identification to open an account.
Alternative financial services were found to be how the unbanked are able to get by. 59 percent had used pawn shops, payday lenders or check cashers within the past year, according to Fox Business, and 12 percent had done so in the previous 30 days of the survey. Prepaid cards were used by 18 percent of unbanked respondents.
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