Unbanked? Here's How Opening Your First Bank Account Could Boost Your Wealth

What does it mean to be 'unbanked'?

Being 'unbanked' means not having a bank account. It’s a surprisingly prevalent issue — about 5.4% of U.S. households, or 7.1 million homes, were unbanked in 2019.

Why is being unbanked a problem?

There are a few reasons why being unbanked can be a problem:

• It can be expensive. Without a bank account, you have to rely on more expensive financial services, such as check-cashing services and payday loans. Research by the FDIC found that unbanked households pay an average of $240 more in fees each year than banked households.
• It can be difficult to save money. Without a bank account, it can be hard to save money for emergencies or long-term goals. A survey by the National Endowment for Financial Education found that only 38% of unbanked households have any savings, compared to 88% of banked households.
• It can limit your access to credit. Without a bank account, it can be difficult to get a loan or credit card. This can make it hard to buy a home, car, or other major purchases.

How can opening a bank account help me build wealth?

Opening a bank account can help you build wealth in a few ways:

• It can help you save money. When you have a bank account, you can set up automatic transfers from your checking account to a savings account. This can help you save money without even thinking about it.
• It can help you get a loan. With a bank account, you can build up a credit history. This will make it easier to get a loan when you need one, and you'll be able to get a better interest rate.
• It can help you invest. Once you have a bank account, you can start investing your money. Investing can help you grow your wealth over time, even if you don't have a lot of money to invest.

How do I open a bank account?

Opening a bank account is easy. You can usually do it online, at a bank branch, or by mail. You will need to provide some basic information, such as your name, address, and Social Security number. You may also need to make a small deposit.

Conclusion

If you are unbanked, opening a bank account is one of the best things you can do to improve your financial future. Bank accounts are safe, convenient, and can help you save money, get a loan, and invest. If you don't have a bank account, open one today.