Recent research from the Federal Deposit Insurance Corporation (FDIC) shows that in many states large populations of consumers do not use a bank account.
According to the FDIC’s report, almost 10 million consumers do not have a bank account. A large portion of these people reside in the southern regions, where the percent of the population without bank accounts exceeds the national average.
Upon further investigation, the organization’s report found that these consumers report opting out of using this type of account management because they lacked sufficient funds to maintain the account, that they didn’t trust banks, and the fees and minimum requirements to keep up the account were too high.
Many of these consumers feel as though they are saving money by avoiding traditional banks altogether, while in actuality, they may be missing the mark on low cost alternatives.
But without a bank account, it’s near impossible for consumers to access credit, even payday loans near you or tax refunds. Often, the added fees from relying on check-cashers and money orders can add up to greatly exceed monthly fees associated with a bank account.
Many consumers have found prepaid credit options as a low cost alternative to traditional banking. Even for low income households, this alternative can be much less costly when compared to avoiding bank accounts altogether.