FDIC Report Shows One In Four U.S. Households Are Unbanked Or Underbanked

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The Federal Deposit Insurance Corporation released the findings of its FDIC National Survey of Unbanked and Underbanked Households on Wednesday, showing that one in four U.S. households are currently unbanked or underbanked.

According to the report, 25.6% of U.S. households are unbanked or underbanked. The report also showed that those households are disproportionately low-income and/or minority households.

Specifically, the survey found that the number of households that are unbanked varies considerably across racial and ethnic groups, with certain racial and ethnic groups being more likely to be unbanked than the population as a whole.

African-American households, for example, were 21.7% unbanked, while Hispanic households were 19.3% unbanked. Asian and Caucasian households, meanwhile, were 3.5% and 3.3% unbanked, respectively.

As far as the underbanked went, the report found that 31.6% of African-American households were underbanked. Hispanic households came in at 24%, while Asian and Caucasian households came in at 7.2% and 14.9%, respectively.

Further, the report found that households with income under $30,000 account for at least 71% of unbanked households. As household income increases, however, the report found that the percentage of unbanked households decreases, with only 4.2% of households earning $30,000 - $50,000 unbanked and less than 1% of households earning over $75,000 unbanked.

Meanwhile, the report found that households earning between $30,000 and $50,000 are almost as likely as lower-income households to be underbanked.

"Access to an account at a federally insured institution provides households with an important first step toward achieving financial security - the opportunity to conduct basic financial transactions, save for emergency and long-term security needs, and access credit on affordable terms," said FDIC Chairman Sheila Bair.

She added, "By better understanding the households that make up 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."

The Federal Deposit Insurance Corporation released the findings of its FDIC National Survey of Unbanked and Underbanked Households on Wednesday, showing that one in four U.S. households are currently unbanked or underbanked. According to the report, 25.6% of U.S. households are unbanked or underbanked. The report also showed that those households are disproportionately low-income and/or minority households. (Market News Provided by RTTNews)