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 steadily growing in number.
10 million have no banking account
Some people conduct all their transactions in cash, including getting paid each month. That means it is not that ridiculous to assume that a lot of people do not need a bank account to survive in the country, though many people think that this is the case.
In the past, there have been a lot of mistakes made by the financial system in the country, and that is why many people are just completely against the system. They only stay away from a banking account because they are steering clear of the system.
CNN explained that the group of individuals is known as the "unbanked. It presently has 10 million people in it and is expanding still.
Recent FDIC study
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 cash advance lenders.
About 9 million people, or 7.7 percent of households in the country, did not have bank accounts. There was a massive increase to when the survey was updated in 2011 to 8.2 percent of the country, which includes 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed many 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.
Differing reasons
According to CNN, approximately 33 percent of respondents in the FDIC's survey of the unbanked reported not having enough cash on a regular basis to maintain a bank account. A further 21 percent reported neither wanting nor needing a banking account; 7.7 percent reported not wanting to deal with banks and 5.4 percent reported that minimum balances were too high or that fees were too expensive, or both.
About 6.4 percent of people said that they had too many overdraft fees and got their account closed while 6.6 percent said they had a negative history with banks or did not have identification to open an account.
The unbanked still use other alternative financial services. In fact, 18 percent said they had used a prepaid card for money. About 59 percent used a check casher, pawn shop or payday lender during the last year while 12 percent had done it in the last 30 days, according to Fox Business.
10 million have no banking account
Some people conduct all their transactions in cash, including getting paid each month. That means it is not that ridiculous to assume that a lot of people do not need a bank account to survive in the country, though many people think that this is the case.
In the past, there have been a lot of mistakes made by the financial system in the country, and that is why many people are just completely against the system. They only stay away from a banking account because they are steering clear of the system.
CNN explained that the group of individuals is known as the "unbanked. It presently has 10 million people in it and is expanding still.
Recent FDIC study
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 cash advance lenders.
About 9 million people, or 7.7 percent of households in the country, did not have bank accounts. There was a massive increase to when the survey was updated in 2011 to 8.2 percent of the country, which includes 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed many 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.
Differing reasons
According to CNN, approximately 33 percent of respondents in the FDIC's survey of the unbanked reported not having enough cash on a regular basis to maintain a bank account. A further 21 percent reported neither wanting nor needing a banking account; 7.7 percent reported not wanting to deal with banks and 5.4 percent reported that minimum balances were too high or that fees were too expensive, or both.
About 6.4 percent of people said that they had too many overdraft fees and got their account closed while 6.6 percent said they had a negative history with banks or did not have identification to open an account.
The unbanked still use other alternative financial services. In fact, 18 percent said they had used a prepaid card for money. About 59 percent used a check casher, pawn shop or payday lender during the last year while 12 percent had done it in the last 30 days, according to Fox Business.
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