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Study By FDIC Finds More And More People Unbanked

By Cornelius Nunev

A recent FDIC survey has found that more people are becoming unbanked, or are living without a bank account of any sort. They are slowly but continuously increasing in number.

Many not banking

A lot of people conduct all their transactions in cash, including getting paid every month. That means it is not that ridiculous to assume that many people do not need a banking account to survive in the country, though many people think that this is the case.

In some cases, it’s because an individual has an almost military like discipline in staying away from the financial system. Given the misbehavior, to say the least, of the American financial system, there is a very easy to understand rationale to that idea.

About 10 million people fall into this class, called “unbanked,” and the group is increasing, according to CNN.

Research done lately

There was a study done by the Federal Deposit Insurance Corporation in 2009. It looked at the unbanked and the underbanked, which consists of all people who do not use banks but use other financial institutions such as payday lenders.

According to Businessweek, the survey showed that there were 9 million people, or 7.7 percent of households, that did not have accounts. In 2011, that number increased to 10 million households or 8.2 percent of the country.

In total, according to Fox Business, an estimated 88.5 percent of households have a checking account and 69.2 percent have a savings account. The main difference evidently is that some hold some kind of account with an alternative service provider, such as a prepaid debit card.

Staying unbanked

Of the unbanked in the FDIC survey, 33 percent said they could not maintain a banking 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 really 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.

Option financial services were found to be how the unbanked are able to get by. 59 percent had used pawn shops, personal loan companies 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.

Resource for this article: avoiding newspaper online pay walls

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Article Citation
MLA Style Citation:
Nunev, Cornelius "Study By FDIC Finds More And More People Unbanked." Study By FDIC Finds More And More People Unbanked. 8 Apr. 2014. uberarticles.com. 18 Aug 2014 <http://uberarticles.com/finance/study-by-fdic-finds-more-and-more-people-unbanked/>.

APA Style Citation:
Nunev, C (2014, April 8). Study By FDIC Finds More And More People Unbanked. Retrieved August 18, 2014, from http://uberarticles.com/finance/study-by-fdic-finds-more-and-more-people-unbanked/

Chicago Style Citation:
Nunev, Cornelius "Study By FDIC Finds More And More People Unbanked" uberarticles.com. http://uberarticles.com/finance/study-by-fdic-finds-more-and-more-people-unbanked/


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