The news: In 2021, the number of unbanked households in the US reached its lowest level since the Federal Deposit Insurance Corporation (FDIC) began conducting the biennial Survey of Unbanked and Underbanked Households.
Financial assistance was the key driver: The survey revealed that 4.5% (5.9 million) of US households didn’t have a checking or savings account in 2021. This percentage is the lowest number recorded since the survey first began in 2009.
The study found that one of the main drivers behind this percentage was citizens opening accounts to receive financial assistance during the pandemic.
- 45% of people who opened a bank account after March 2020 said they were motivated to do it to receive a stimulus payment, an unemployment benefit, or some other form of government financial assistance.
- At the start of the pandemic, the FDIC began an education program to encourage citizens to open a bank account for easier and direct access to financial assistance programs.
- The FDIC also cited the growing number of banks that removed their overdraft fees as another driver behind the drop in the unbanked percentage. Historically, people listed overdraft fees as a deterrent to opening a bank account.
The survey also found that 14% (18.7 million) of US households were considered underbanked in 2021.