As many as 17 million Americans do not have bank accounts, mainly due to low income, says a survey by the U.S. Bureau of the Census.
Moreover, about 21 million people in the U.S. rely on alternative financial services, despite having bank accounts.
The survey of 54,000 American households, conducted for the Federal Deposit Insurance Corporation (FDIC), showed that “7.7 per cent were unbanked, which translates nationally to 9 million households — approximately 17 million adults“.
Those having no savings or checking (current) accounts were identified as unbanked. According to the survey, households with annual income of under $30,000 accounted for at least 71 per cent of the unbanked households.
“As income increases, the share of households that are unbanked declines considerably,” the survey said.
About 17.9 per cent, or 21 million households nationally (approximately 43 million adults), were found to be under-banked. Households which have bank accounts but depend on alternative financial services were classified as under-banked.
The survey carried out by the U.S. Bureau of the Census on behalf of FDIC, found that certain racial and ethnic groups were more likely to be unbanked. FDIC is a federal agency which insures deposits at more than 8,000 financial institutions in the country.
