Nov 19, 2024 - Business
Share of unbanked Americans at a record low
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The share of unbanked Americans is at a record low, per a new survey from the FDIC.
Why it matters: It's a positive economic sign and a signal of a strong labor market.
The big picture: Lack of access to a checking or savings account is a big financial burden.
- Without access to a bank account, simple activities like paying a bill, cashing a paycheck, or even paying for everyday goods become a lot harder, and often more expensive.
- Plus, keeping your money outside the FDIC-protected banking system means there's a higher chance it isn't safe.
Catch up fast: The share of unbanked Americans has been steadily falling since the financial crisis, as more folks started working again. (If you have a job, you more likely need someplace to stash your pay.)
- The number took another leg down during the pandemic, as more Americans opened accounts to have easier access to direct deposit stimulus and unemployment checks.
- The ranks of the unbanked are also falling as the population gets older, and becomes generally more educated — older folks and those with more education are more likely to be banked.
Zoom in: Unbanked rates are higher for lower-income households and for Black, Hispanic and Native American people.
- 42% of those surveyed who didn't have a bank account said they don't have enough money to meet the minimum balance requirements.
- Nearly 16% of those without an account said they don't trust banks.
