‘Unbanked’ on wane in U.S., survey finds

More Americans open checking or savings accounts at banks

NEW YORK — More Americans have access to a checking or savings account, according to a survey released Thursday by federal regulators, a sign that the improving economy is helping lift the nation’s poorest households.

Having a checking or savings account is considered a cornerstone of financial stability in the U.S. Without one, households must rely on check-cashing services, prepaid debit cards and other costly ways to pay bills and make routine transactions.

The portion of Americans who do not have a bank account, known in industry jargon as the “unbanked,” declined to 7 percent in 2015 from 7.7 percent in 2013, according to the survey from the Federal Deposit Insurance Corp.

The improvements came mostly from households making less than $15,000 a year and among minority populations, particularly black and Hispanic households.

Another way of looking at it: For every 10 households that were unbanked in 2013, one of those households is now banked.

“The improving economy no doubt impacted these numbers in a positive way,” FDIC Chairman Martin Gruenberg said in an interview.

The Census Department reported last month that median household income rose 5.2 percent from 2014 to 2015 , the first annual increase in that metric since before the recession. That same report showed the proportion of Americans in poverty also fell last year, from 14.8 percent to 13.5 percent, the biggest annual decline in nearly 50 years. More Americans making less than $15,000 opened bank accounts from 2013 to 2015.

There are several reasons why people choose not to have a traditional bank accunt. Some do not trust banks or want to avoid their fees, or they have privacy concerns, according to the FDIC report. There is also a perception among the unbanked that bank accounts are not for the poor. More than half of unbanked households said they believe banks are “not at all interested” in serving households like theirs, the report said.

But the No. 1 reason why Americans say they do not have a checking or savings account is that they believe they do not have enough money.

The FDIC said roughly 57 percent of all unbanked households cited lack of money as a reason not to have an account, and roughly 38 percent of those same people said that was the main reason.