The first in a series of "Taking Care of Business" blogposts
It is surprising to consider that in an economy where so many financial transactions are completed online or remotely using a cell phone, a sizeable number of Americans still don’t have bank accounts. The Federal Deposit Insurance Corporation reports that an estimated 8.2% of US households are unbanked and 20.1% are underbanked.1
Going without banking services incurs costs in convenience and in direct expenses as transaction fees. Cashing a paycheck or a benefits check at a check-cashing service or paying bills with money orders may lead to as much as $500 a year in transaction costs that might otherwise be about $120 using a checking account.
Unbanked and underbanked households use alternative financial services providers at higher rates than fully banked households. The highest unbanked and underbanked rates are found among non-Asian minorities, lower-income, younger, and unemployed households.
On April 25, 2013, the Naperville Public Library will host a free, no-obligation workshop presented by Jahary Llacsa of Naperville Bank & Trust, a Wintrust Community Bank, on the various options and advantages for using banking accounts. This workshop will help those who do not now use banking accounts to understand the benefits of using banking services at any financial institution. This workshop is presented as part of the library’s Money Smart Week programming and the Healthy, Wealthy & Wise initiative.
1. 2011 FDIC National Survey of Unbanked and Underbanked Households, Executive Summary, September 2012, p3. Accessed March 27, 2013 http://www.fdic.gov/householdsurvey/2012_unbankedreport_execsumm.pdf.