60 MILLION AMERICANS ARE “UNBANKED” OR “UNDERBANKED”

Almost 8% (7.7%) of U.S. households, or about 17 million adults, are unbanked, i.e., have no checking or savings account. At least 71% of this group earn less than $30,000 annually, according to the FDIC Survey of Unbanked and Underbanked Households. Another 18% of U.S. households, or about 43 million adults, are underbanked, i.e., have a checking or savings account but rely on money orders, non-bank check-cashing services, payday loans, rent-to-own agreements or paw shops. This group generally earns $30,000-$50,000 annually. Still, less than 20% of American households with less than $30,000 in annual income, or 14 million adults, are unbanked; 4.2% of those earning $30,000-$50,000 annually have no banking relationship, and less than 1% of U.S. households with $75,000 or more in annual income are unbanked, the FDIC survey shows. Commenting on the survey, FDIC Chairman Sheila Bair said, “Access to an account at a federally-insured institution provides households with an important first step toward achieving financial security. By better understanding the households that make up this group – who they are and their reasons for being unbanked or underbanked – we will be better positioned to help them make that first step.” To access the survey, click here.