A small portion of the population has no bank or transaction accounts of any sort. They're called the unbanked, and they rely seriously on cash dealings and alternative financial service providers to make their way in the globe. There are also more of them each year, according to a recent FDIC survey.
Millions steering clear of banks like the plague
Many 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 lots of people who do all their business in cash. These people get paid and cash and use it for all their purchases.
It makes sense that lots of people would keep away from a banking account simply because they are trying to stay away from the financial system. In fact, the financial system has made a lot of bad decisions in the past.
About 10 million people fall into this class, called "unbanked," and the group is growing, according to CNN.
Study done lately
There was a study done by the Federal Deposit Insurance Corporation in 2009. It looked at the unbanked and the underbanked, which involves all people who do not use banks but use other financial institutions such as payday loan lenders.
In that survey, 7.7 percent of households in the U.S. held no accounts, roughly 9 million people. An update to the outcomes of that survey, performed in 2011, found it had increased to 8.2 percent. Roughly 10 million households or 17 million adults lack any bank account, an increase, according to Businessweek, of 821,000 people.
There was a study done by Fox Business that showed a number 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 difference.
Reasons for it
Of the unbanked in the FDIC survey, 33 percent said they could not maintain a banking account because they did not have enough money coming in all the time, 21 percent said they did not need the account, 7.7 percent said they did not want to actually have to go to the bank, and 5.4 percent said that they could not afford minimum balances or extra fees, according to CNN.
A further 6.6 percent reported having a negative history with banks or lacked proper identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue charges.
Of the unbanked, 12 percent used pawn shops, cash lenders or payday lenders in the last 30 days before the survey and 59 percent had used them in the last year, according to Fox Business. About 18 percent of respondents used prepaid cards for cash. Alternative financial services seem to be what the unbanked used.
Millions steering clear of banks like the plague
Many 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 lots of people who do all their business in cash. These people get paid and cash and use it for all their purchases.
It makes sense that lots of people would keep away from a banking account simply because they are trying to stay away from the financial system. In fact, the financial system has made a lot of bad decisions in the past.
About 10 million people fall into this class, called "unbanked," and the group is growing, according to CNN.
Study done lately
There was a study done by the Federal Deposit Insurance Corporation in 2009. It looked at the unbanked and the underbanked, which involves all people who do not use banks but use other financial institutions such as payday loan lenders.
In that survey, 7.7 percent of households in the U.S. held no accounts, roughly 9 million people. An update to the outcomes of that survey, performed in 2011, found it had increased to 8.2 percent. Roughly 10 million households or 17 million adults lack any bank account, an increase, according to Businessweek, of 821,000 people.
There was a study done by Fox Business that showed a number 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 difference.
Reasons for it
Of the unbanked in the FDIC survey, 33 percent said they could not maintain a banking account because they did not have enough money coming in all the time, 21 percent said they did not need the account, 7.7 percent said they did not want to actually have to go to the bank, and 5.4 percent said that they could not afford minimum balances or extra fees, according to CNN.
A further 6.6 percent reported having a negative history with banks or lacked proper identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue charges.
Of the unbanked, 12 percent used pawn shops, cash lenders or payday lenders in the last 30 days before the survey and 59 percent had used them in the last year, according to Fox Business. About 18 percent of respondents used prepaid cards for cash. Alternative financial services seem to be what the unbanked used.
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