In Case You Missed It - Record Low of 4.5% Americans Don’t Have a Bank Account

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ICYMI: Record Low of 4.5% Americans Don't Have a Bank Account

In case you missed it, the share of unbanked Americans dropped to 4.5% last year, the lowest figure since the government started keeping track in 2009. While the current number is still a steep drop from its peak of 8.2% in 2011, this still means that nearly 6 million households do not have a bank account at all.

For those households, the lack of bank accounts means they can be particularly vulnerable to predatory and expensive alternatives like payday loans or check cashing services.

According to the FDIC, the most common reason for people remaining unbanked was not having enough money to maintain minimum balances required by many banks. Large gaps remain between different races as well, with only 2.1% of White households remaining unbanked last year, compared to 11.3% of Black households and 9.3% of Hispanic households.

- Kristin

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Term of the Day

Money Order

A money order is an alternative to cash or checks. Like a check, a money order is designed to be sent to a specific person, and cannot be cashed or deposited by anyone else. Unlike a check, a money order is paid for in advance, so it's guaranteed. You can use a money order to purchase items, pay bills, or just send money to someone—locally or internationally.

You might prefer to use a money order if you don't have a bank account but want a safer alternative to cash, you want to send money internationally, or you don't want your payment connected to your bank account or credit card.

If you're the one sending the money order, you'll typically need to buy it in a physical location and then deliver it in person or send it in the mail. If you're receiving the money order, you can cash or deposit it in person at most banks, or deposit it online at some banks.

You don't have to go to a bank or credit union to find a money order. There are a number of places you can buy one, including all U.S. post office locations, convenience stores and supermarkets, and check cashing, money transfer, and payday loan stores.

Off the Charts

As home prices start to fall from their recent peak, many experts think it will make things much easier for buyers. However, a major downturn isn't guaranteed—and even if it happens, don't expect a return to pre-pandemic prices. Economists at real estate website Zillow don't think a crash will happen because there are so few homes on the market that prices are likely to stay high despite so many buyers dropping out due to spiking interest rates.