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.
Unbanked millions
Lots of 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 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 some people are just totally against the system. They only stay away from a banking account because they are staying away from the system.
About 10 million people fall into this class, called "unbanked," and the group is increasing, according to CNN.
More people joining
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.
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 apparently is that some hold some kind of account with an alternative service provider, such as a prepaid debit card.
Taking a look at reasons
In the FDIC survey, respondents explained why they avoided banks, according to CNN. 7.7 percent said they did not want to work with banks while 5.4 percent said that it cost too much to pay all the charges or that minimum balances were too high. About 21 percent said that they did not want or need the account while 33 percent said they did not have enough cash coming in regularly to need the account.
A further 6.6 percent reported having a negative history with banks or lacked correct identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue fees.
Of the unbanked, 12 percent used pawn shops, cash lenders or payday loan lenders during the last 30 days before the survey and 59 percent had used them in the last year, according to Fox Business. About 18 percent of respondents used prepaid cards for money. Alternative financial services appear to be what the unbanked used.
Unbanked millions
Lots of 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 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 some people are just totally against the system. They only stay away from a banking account because they are staying away from the system.
About 10 million people fall into this class, called "unbanked," and the group is increasing, according to CNN.
More people joining
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.
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 apparently is that some hold some kind of account with an alternative service provider, such as a prepaid debit card.
Taking a look at reasons
In the FDIC survey, respondents explained why they avoided banks, according to CNN. 7.7 percent said they did not want to work with banks while 5.4 percent said that it cost too much to pay all the charges or that minimum balances were too high. About 21 percent said that they did not want or need the account while 33 percent said they did not have enough cash coming in regularly to need the account.
A further 6.6 percent reported having a negative history with banks or lacked correct identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue fees.
Of the unbanked, 12 percent used pawn shops, cash lenders or payday loan lenders during the last 30 days before the survey and 59 percent had used them in the last year, according to Fox Business. About 18 percent of respondents used prepaid cards for money. Alternative financial services appear to be what the unbanked used.
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