A recent FDIC survey has found that more people are becoming unbanked, or are living without a banking account of any kind. They are gradually but continuously increasing in number.
Unbanked millions
A lot of people assume that a bank account is a necessary thing to have to live in the country. Still, that is not totally true since there actually are many 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 lot of mistakes made by the financial system in the country, and that is why some people are just entirely against the system. They only stay away from a banking account because they are steering clear of 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 payday advance lenders.
About 9 million people, or 7.7 percent of households in the country, did not have accounts. There was a huge increase to when the survey was updated in 2011 to 8.2 percent of the country, which contains 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed lots of people really use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The additional accounts elsewhere make up the main difference.
Looking 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 fees 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.
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 to them.
Option financial services were found to be how the unbanked are able to get by. 59 percent had used pawn shops, payday loan 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.
Unbanked millions
A lot of people assume that a bank account is a necessary thing to have to live in the country. Still, that is not totally true since there actually are many 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 lot of mistakes made by the financial system in the country, and that is why some people are just entirely against the system. They only stay away from a banking account because they are steering clear of 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 payday advance lenders.
About 9 million people, or 7.7 percent of households in the country, did not have accounts. There was a huge increase to when the survey was updated in 2011 to 8.2 percent of the country, which contains 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed lots of people really use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The additional accounts elsewhere make up the main difference.
Looking 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 fees 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.
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 to them.
Option financial services were found to be how the unbanked are able to get by. 59 percent had used pawn shops, payday loan 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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