They are called the "unbanked", and as crazy as it may sound to the rest of us, they are the 25.6% of U.S. households that have no standing bank accounts.
Ever wonder how those horrid payday loans and places like CashCall (R.I.P. Gary Coleman) stay in business? The one out of every four households that does not give themselves an alternative because, for whatever the reason, they would rather, or must, pay high fees and loan costs because they do not have a checking account.
A recent FDIC survey shows that this group now includes over 30 million households.
Imagine...no bank to put your money in...no debit card...no credit card...just cash and some hiding places in your house somewhere.
The survey found that the group is made up mostly of the so-called "minority" groups and 71% of the "unbanked" households earn less than $30,000 per year.
As you can imagine, only 18% of America's banks are making efforts to capture this demographic, as most banks do not seek to open branches in "underbanked" areas.
As part of a 2005 law, however, the FDIC is required to track and report industry efforts to bring banking services to the "unbanked".
Showing posts with label FDIC. Show all posts
Showing posts with label FDIC. Show all posts
Monday, June 7, 2010
Thursday, June 9, 2005
Know We're Paying For That?
When you depsoit your money in the bank, you feel comfortable because of those FDIC plates that tell you that your money is insured.
Well, it is true that your money is insured, but here is something that you may not have known...if the U.S. Government had to pay out on that FDIC insurance on a mass scale, it could total up to $3.4 trillion based on current deposit rates.
Where do you think the U.S. Government will get that $3.4 trillion dollars when it needs it? Why from the citizens, of course, through a tax hike, where else?
Here are some other things that you might not know.
The U.S. Government insures American farmers - we all know that - but did you know that the potential for loss could be as high as $41 billion in a single farm season?
When you buy flood insurance, chances are that you are buying that flood insurance from the U.S. Government because almost all private insurance companies will not take on the risk. An unheard-of catastrophic flood season could potentially carry a bill for the tax-payers of $643 billion.
How about nuclear power plants? Did you know that once an accident bill at a nuclear power plant exceeds $9.4 billion, there are laws in place that say every penny over that amount will be paid for by the U.S. Government, again, meaning the tax-payers?
Now, here is the real kicker. You might work a job where you have no pension, or no retirement plan, but when the U.S. Government steps in to bail out failed pension plans through The Pension Benefit Guaranty Corp., it uses your income tax dollars to bail out the pension. It doesn’t matter what side of the political spectrum you are on...that’s gotta upset you.
Well, it is true that your money is insured, but here is something that you may not have known...if the U.S. Government had to pay out on that FDIC insurance on a mass scale, it could total up to $3.4 trillion based on current deposit rates.
Where do you think the U.S. Government will get that $3.4 trillion dollars when it needs it? Why from the citizens, of course, through a tax hike, where else?
Here are some other things that you might not know.
The U.S. Government insures American farmers - we all know that - but did you know that the potential for loss could be as high as $41 billion in a single farm season?
When you buy flood insurance, chances are that you are buying that flood insurance from the U.S. Government because almost all private insurance companies will not take on the risk. An unheard-of catastrophic flood season could potentially carry a bill for the tax-payers of $643 billion.
How about nuclear power plants? Did you know that once an accident bill at a nuclear power plant exceeds $9.4 billion, there are laws in place that say every penny over that amount will be paid for by the U.S. Government, again, meaning the tax-payers?
Now, here is the real kicker. You might work a job where you have no pension, or no retirement plan, but when the U.S. Government steps in to bail out failed pension plans through The Pension Benefit Guaranty Corp., it uses your income tax dollars to bail out the pension. It doesn’t matter what side of the political spectrum you are on...that’s gotta upset you.
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