Think a bank won’t take you? Think again.
Posted by Donna Freedman on Jul 8, 2010 | 5 commentsAn estimated 9 million American households are “unbanked” — that is, have neither checking nor savings accounts, according to the Federal Deposit Insurance Corp.
If you’re one of those approximately 17 million people, you may spend more than $1,000 a year just to cash checks. You’re not very likely to start a savings account, let alone an emergency fund — and if you do have an EF, it’s probably under the mattress, uninsured and at risk of theft or fire.
Maybe you think you don’t need a bank account or that you can’t get one. But you do, and you probably can.
That’s the topic of my latest “Living With Less” column over at MSN Money. “Think a bank won’t take you?” discusses options like Bank On and Operation Hope, which will work with even those who’ve had previous financial problems that got them blacklisted.
Just FYI to those who don’t trust banks: Credit unions participate in these programs, too.
Using check-cashing places is, in effect, giving yourself a pay cut. Please find out if you qualify for a bank or credit union account.
For more on personal finance — everything from rent-free living to getting paid to save money — browse through the Living With Less article index.
I’m surprised the number is so high. Does the 9 million include kids?
@Jersey Mom: Thank you for posting this because it made me go back and check the survey — and I found out that I had it wrong. It’s 9 million households, and approximately 17 million adults.
Scary stuff.
I hope that more people find out about these programs. I really worry about the proliferation of “Cash Now” and “Payday advance” institutions. They are really a bad deal.
Never would have guessed that!
I know this is an older post, but I had to respond. I worked for a non-profit that employed about 100 people. We did not have direct deposit available because we had to have a certain percentage of employees participate, and 85% did not have a bank account so that their checks could be deposited. When they were offered a FREE bank account at a local credit union (the company was going to foot the bill for the $25 it would cost per account to set up), they still declined. Reason: they were “afraid” of banks. Our employees were all over the age of 21. What are they teaching kids in school now?