FDIC Finds More People Unbanked
A recent FDIC survey has found that more people are becoming unbanked, or are living without a bank account of any type. They are gradually but steadily growing in number.
Many not banking
A lot of people assume that a banking account is a necessary thing to have to live in the country. Still, that is not completely true since there actually are lots 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 entirely against the system. They only avoid a banking account because they are staying away from the system.
They are called the "unbanked," according to CNN, and their numbers are increasing. It is estimated that nearly 10 million people are now unbanked.
FDIC study finds ranks increasing
In 2009, the Federal Deposit Insurance Corporation released a study in regards to the number of the unbanked and also the under-banked, meaning people who used financial institutions other than banks such as check cashers and cash advance 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.
There was a study done by Fox Business that showed a number of people actually use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The extra accounts elsewhere make up the difference.
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 money 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 charges, according to CNN.
About 6.6 percent of people said that they did not have identification or did not have a good history with banks. Another 6.4 percent said that bank overdrafts and unpaid charges led to the bank closing the account down on them.
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.
Many not banking
A lot of people assume that a banking account is a necessary thing to have to live in the country. Still, that is not completely true since there actually are lots 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 entirely against the system. They only avoid a banking account because they are staying away from the system.
They are called the "unbanked," according to CNN, and their numbers are increasing. It is estimated that nearly 10 million people are now unbanked.
FDIC study finds ranks increasing
In 2009, the Federal Deposit Insurance Corporation released a study in regards to the number of the unbanked and also the under-banked, meaning people who used financial institutions other than banks such as check cashers and cash advance 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.
There was a study done by Fox Business that showed a number of people actually use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The extra accounts elsewhere make up the difference.
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 money 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 charges, according to CNN.
About 6.6 percent of people said that they did not have identification or did not have a good history with banks. Another 6.4 percent said that bank overdrafts and unpaid charges led to the bank closing the account down on them.
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.
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