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The number of American households that were unbanked last yr dropped to its lowest level since 2009, a dip due in role to people opening accounts to receive financial aid during the pandemic, a new written report says.

Roughly 4.5% of U.S. households – or 5.9 million – didn't take a checking or savings account with a banking concern or credit marriage in 2021, a record low, according to the Federal Deposit Insurance Corporation'southward most recent survey of unbanked and underbanked households.

Roughly 45% of households that received a stimulus payment, jobless benefits or other authorities assistance after the start of the pandemic in March, 2020 said those funds helped compel them to open an account, according to the biennial report which has been conducted since 2009.

"Safe and affordable bank accounts provide a mode to bring more Americans into the banking organization and volition continue to play an important role in advancing economic inclusion for all Americans,'' FDIC interim chairman Martin J. Gruenberg said in a statement.

A lack of banking options delayed some households from getting federal payments aimed at helping the country weather the economic fallout from the COVID-xix health crisis.

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The FDIC initiated an educational campaign to get more Americans to open up an account to enable the direct eolith of those funds. And banks such as Capital I and Ally Financial ended overdraft and other fees that take been a key barrier to some Americans accessing the cyberbanking system.

What does information technology hateful to be unbanked?

A household is deemed unbanked when no ane in the home has an account with a banking company or credit matrimony. That share of households has dropped by nearly half since 2009. And since 2011, when 8% of U.S. households were unbanked, the highest since the start of the survey, and the record depression reached in 2021, roughly half of the drop was due to a shift in the fiscal circumstances of American households the FDIC says.

Who are the underbanked?

A bank manager helps a woman open up a new account.

Those who take a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. The underbanked represented 14% of U.S. households, or 18.7 million, concluding twelvemonth.

Why are people unbanked or underbanked?

Many of those who are unbanked say they tin can't afford to have an account because of the fees for insufficient funds and overdrafts that are tacked on when business relationship balances fall brusk. Roughly 29% said fees or not having the required minimum balance were the primary reasons they didn't have a checking or savings business relationship, as compared to 38% who cited those obstacles in 2019.

Are some groups more than likely to exist unbanked?

The numbers of the unbanked were greater among households that included those who were working age and disabled, lower income, included a single mother, or were Black or Hispanic. Among white households for instance, 2% didn't accept a bank account last year as compared to 11% and 9% of their Black and Hispanic counterparts.

Meanwhile, near xv% of households with a working historic period member who had a disability were unbanked compared to well-nigh four% of other households. And nigh 16% of households with a unmarried mother were unbanked equally compared to virtually two% of married couples who lacked an business relationship.

"These gaps attest at that place's still a lot of opportunity to expand participation across the population in the banking system,'' Keith Ernst, Associate Director of Consumer Inquiry and Examination Analytics at the FDIC, said during a media phone call about the written report.

Volition the number of unbanked ascent if the U.S. has a recession?

Maybe.

"During the last recession unbanked rates did indeed go upward,'' Karyen Chu, principal of the Banking Research Section at the Centre for Financial Inquiry, said during the call.

Additionally, last year, homes where the head of household was out of work were near five times more than likely to non accept a bank account as compared to those where the household head was employed.

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"To the extent that income goes down ... that has generally been associated with increases in unbanked rates,'' Chu said.

Follow Charisse Jones on Twitter @charissejones