Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Quarter of US Households Have Limited Bank Access

Minorities, low-income families hit hardest

By John Johnson,  Newser Staff

Posted Dec 2, 2009 6:10 PM CST
Email

(Newser) – A quarter of US households have little or no access to banks—relying instead on nontraditional services such as check-cashing shops, pawn shops, or payday loans, and often paying exorbitant interest rates. The first comprehensive survey of its kind by the Federal Deposit Insurance Corp. showed that 71% of families that earn less than $30,000, and 22% of black families don't use banks, reports the Washington Post.

"By better understanding this group—who they are and their reasons for being unbanked or underbanked—we will be better positioned to help them take that first step" toward financial security, said FDIC chief Sheila Bair. Most of those who don't use banks say they don't think they have enough money to open an account.

A customer enters a Payroll Advance location in Cincinnati. Low-income families often rely on such check-cashing operations instead of banks.
A customer enters a Payroll Advance location in Cincinnati. Low-income families often rely on such check-cashing operations instead of banks.   (AP Photo/Al Behrman, File)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
0%
0%
67%
0%
33%
0%
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 6 comments
DontLikeYou___
Dec 3, 2009 12:45 PM CST
Don't use banks? Not such a bad idea in light of their incompetent handling of their meager tasks.
luluzz
Dec 3, 2009 6:23 AM CST
It's about time the govt. and public in general learned the realities of life for a huge percentage of Americans. They don't open accounts, because they don't have enough money to get started. Every penny is needed every month just to pay rent and eat, and there's never ANY money left over for the beginning of next month. Been there myself, and still am, trying to live on disability and retirement, even though I worked HARD all of my life as a journalist raising a family on my own, so was never able to save anything for this time of life. This story is a fact for too many Americans.
GeminiMishy
Dec 3, 2009 4:49 AM CST
The statement was that they don't "think" they have enough money to open an account. I found myself in the same predicament when I went to two separate banks and they said the minimum for a savings account was $100. Given, I was much younger, and I did more research, but for a family who barely has $20 at the end of the month, handing over that much money and incurring fees for going under that can be frightening. I always recommend seeing if you can get into a credit union first, they tend to have little to no fees and are secure. Just most often, not nationwide.
Money • US

 
African Americans • FDIC • low-income families • banks • banking industry • Sheila Bair

More Newser Stories

Bank Failures Far From Over

Sheila Bair to Leave FDIC in July

FDIC Seizes 6 Banks, for Total of 34 This Year

Banks Jack ATM Fees, Blame Reform

FDIC's Failed Bank Tab: $9B
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne