A new Federal Deposit Insurance Corporation (FDIC) survey found that nearly 96 percent of U.S. households were banked in 2021.
The FDIC’s biennial 2021 National Survey of Unbanked and Underbanked Households revealed that just 4.5 percent of U.S. households – or roughly 5.9 million households — lacked a bank or credit union account. This is the lowest national unbanked rate since the FDIC survey began in 2009. Since the last survey in 2019, approximately 1.2 million more households were banked.
Additionally, nearly half of newly banked households that received government payments said these payments contributed to their decision to open a bank or credit union account.
The survey also revealed that 14.1 percent of households – or roughly 18.7 million households — were underbanked in 2021, meaning they had a bank or credit union account and used nonbank financial products and services.
“During the pandemic, consumers opened bank accounts to access relief funds and other benefits quickly and securely,” FDIC Acting Chairman Martin Gruenberg said. “Safe and affordable bank accounts provide a way to bring more Americans into the banking system and will continue to play an important role in advancing economic inclusion for all Americans. Today’s results highlight the importance of ensuring consumers who are receiving benefits or starting a new job, two key bankable moments, can easily find and open a bank account that meets their needs.”
The data showed that unbanked and underbanked rates were higher among minorities, as 2.1 percent of White households were unbanked, compared with 11.3 percent of Black households and 9.3 percent of Hispanic households. While this gap is large, it is smaller than it was in 2019, when the rate was 2.5 percent for White households compared to 13.8 percent and 12.2 percent among Black and Hispanic households, respectively. Further, 9.3 percent of White households were underbanked, compared with 24.7 percent of Black households and 24.1 percent of Hispanic households.
Also, the use of mobile banking increased sharply. In 2017, 15.1 percent of households used mobile banking, while that number shot up to 43.5 percent in 2021.
“Banked households appear to be using nonbank online payment services in conjunction with banking products by linking them to credit cards or bank accounts, while unbanked households are frequently using these services in place of a bank account,” Gruenberg said. “The FDIC will continue its educational and outreach efforts to help consumers understand the benefits of a bank account, the consumer protections they afford, and the applicability of deposit insurance.”
The FDIC launched the #GetBanked initiative at the start of the pandemic to inform consumers about how to open a bank account online to facilitate the distribution of Economic Impact Payments through direct deposit.
In April 2021, it began a public awareness campaign with targeted advertising in select cities to promote the benefits of opening a bank account. The FDIC is calling on community groups and government agencies to join the movement.