In the aftermath of one of the worst recessions in history, more Americans have only a limited relationship with banks—or none at all—and instead rely on check cashers and payday lenders to manage their finances, according to a new federal report. The report from the Federal Deposit Insurance Corp. says not only are these Americans more vulnerable to high fees and interest rates, but they are also cut off from credit to buy a car or a home or pay for college. Released Wednesday, the study found that 821,000 households opted out of the banking system from 2009 to 2011 and that the so-called unbanked population grew to 8.2% of U.S. households. That means that roughly 17 million adults are without a checking or savings account. Another 51 million adults have a bank account but use pawnshops, payday lenders or rent-to-own services, the FDIC reports. This underbanked population has grown from 18.2% to 20.1% of households nationwide. The study also found that more than one in four households—or 28.3%—either had one or no bank account. A third of these households say they don’t have enough money to open and fund an account. Minorities, the unemployed, young people and lower-income households are least likely to have accounts. Read the full story here.
Today’s poll question: How has the recession changed your relationship with banks?
