Being Unbanked/Underbanked

• Unbanked

  • People who do not use mainstream financial services, such as checking or savings accounts, and primarily conduct transaction in cash when using alternative financial services like payday lending or check cashing, are considered unbanked.

• Underbanked

  • An “unbanked” person is someone that does not have a checking or savings account with an insured (FDIC) institution.

  • underbanked: means that the household had a checking or savings account with FDIC insured institution, but regularly used alternative financial services (AFS).

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