Opening a bank account can play an important role in personal finance.
Not only does it provide a secure place to store and manage money, but it gives you a chance to build a banking relationship with a financial institution, which can help you access financial tools like a personal loan or a credit card.
Who are the unbanked?
The term unbanked refers to those who don't use or have access to a checking or savings account to manage their money.
According to a FDIC survey, 4.2% of U.S. households — about 5.6 million people — were unbanked in 2023. While high, that is the lowest share since the survey began in 2009.
Further, the unbanked rate was higher among certain demographics, specifically lower-income households, less-educated households, working-age households with a disability, households with income that varied greatly on a monthly basis, single-parent households, Black households, Hispanic households, and American Indian or Alaska native households.
Unbanked vs. underbanked
People who do have a bank account but regularly use other non-bank financial services, such as check-cashing and payday loans, are referred to as "underbanked" by the FDIC.
In 2023, 14.2% of U.S. households, or about 19 million households, were considered underbanked. That includes nearly one in four households without a high school diploma and one in five Black, Hispanic, American Indian or Alaska Native, and Native Hawaiian or Other Pacific Islander households, according to the FDIC.
Reasons for being unbanked
According to the FDIC survey, the main reasons unbanked households cited most frequently for not having a bank account were:
- Issues related to fees and minimum balances (cited by 33.4% of respondents)
- Not enough money to meet minimum balance requirements (cited by 23.3% of respondents)
- Distrustful of banks (cited by 15.7% of respondents)
A history of financial exclusion
Around one third of respondents surveyed by the FDIC said one reason they didn't have a bank account was a distrust of banks, while 15.7% said it was the main reason.
Nicole Elam, president and chief executive officer of the National Bankers Association, acknowledges that Black and brown households face greater challenges than white households when receiving home loans and other financial services.
"When you think about the history of Black and brown communities, many of them have been systematically excluded," says Elam. "It's understandable why there would be a mistrust of things."
As a result, these communities should look for institutions that aren't just pushing products and services, but also offering financial education.
"When you talk about the unbanked and underbanked households, they need inclusive financial literacy education, so education that meets them where they are, as well as access to financial services to achieve financial health," Elam says.
Elam adds that when you couple financial literacy with an established banking relationship, you're able to change banking behaviors among the unbanked.
Immigrants and banking
Immigrants can face unique challenges when it comes to banking in the U.S.
Many financial institutions require bank account applicants to provide a U.S. identification card, such as a passport or driver's license, and a Social Security number. There are several top banks and credit unions for immigrants, however, that permit alternative forms of ID.
Another challenge for non-English-speaking immigrants is finding an institution with bilingual services.
Solutions and alternatives
A variety of federal, state, and private programs aim to assist unbanked populations with gaining access to affordable banking services.
David Rothstein, senior principal at the Cities for Financial Empowerment Fund and a leader of the Bank On Initiative, says unbanked households can refer to Bank On as a resource to find an affordable and safe financial institution that's right for them.
The Bank On Initiative currently has 483 certified bank accounts throughout the U.S. You can find options in every state.
"Any of those accounts are going to meet the Bank On standards. They are going to be $5 or less per month, no overdraft or NSF fees, a minimum opening deposit of $25 or less," says Rothstein.
Bank On also has local coalitions that work with different groups to help individuals find the best bank account for their unique needs.
The FDIC also recognizes financial institutions owned by Black, Hispanic American, Asian, and Native Americans that serve their respective communities under the Minority Depository Institutions Program. You can look at our guides on Black-owned banks and Hispanic American-owned banks to learn more about specific services and products offered.
Trends in banking access and usage
There was little change in the rate of unbanked households between 2021 (4.5%) and 2023 (4.2%), according to the FDIC survey.
Notably, a greater share of Americans, both banked and unbanked, turned to non-bank payment services during that time frame.
Nearly half of all U.S. households reported using non-bank payment services like PayPal, Venmo, or Cash App in 2023, representing a 3% increase from two years earlier.
Compared with banked households, "substantially higher shares" of unbanked households use online payment services and prepaid cards as a substitute for core financial transactions typically conducted through a bank, such as paying bills, receiving income, and keeping money safe.
Open an Account Online
no monthly service fee
None
$0
Pros
Cons
- Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases (See website for details)
- 100% US-based customer service available 24/7
- No opening deposit or minimum account balance
- No monthly maintenance fees
- Over 60,000 in-network ATMs
- FDIC insured
no monthly service fee
up to 3.10%
$0
Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a +0.90% Boost on Savings APY to up to 4.00% for up to 6 months on new accounts. Terms apply.⁸ Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.26. Rates are variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Pros
Cons
SoFi Checking and Savings is a great account option if you don't mind keeping your savings and checking in one account.
SoFi® Checking and Savings (Member FDIC)- New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more.. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/.
- These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
no monthly service fee
None
$0
Pros
Cons
Chime has one of the best checking accounts out there, but it doesn't offer joint accounts or pay the best savings rate. Its strongest feature is that it's great for people who might not qualify to open accounts elsewhere — it doesn't check your credit score or banking history when you apply for a checking account, savings account, or credit card. It also provides several credit-building tools.
Chime Checking Account- Get paid up to 2 days early with direct deposits
- 50,000+ fee-free ATMs nationwide through MoneyPass® and Visa® Plus Alliance
- Free cash deposits at Walgreens; May deposit cash at other select retail locations but you may be charged a fee
- Rounds debit card purchases up to the nearest dollar and moves spare change into your Chime Savings Account
- Qualify for SpotMe® overdraft protection by receiving $200 in direct deposits per month
- Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
FAQs
What does it mean to be unbanked?
Unbanked individuals do not have a savings or checking account and do not use banking institutions for their financial transactions.
Why are some people unbanked?
Many people are unbanked because they do not trust financial institutions or do not have the funds to meet minimum balance requirements.
What are the main challenges for unbanked individuals?
Unbanked individuals may have trouble keeping their savings secure, qualifying for credit or loans, and completing basic financial transactions. They may use more costly methods, such as check-cashing services or payday loans.
How can the unbanked gain access to financial services?
Community outreach programs such as the Bank On Initiative and Inclusiv Network help people from underserved areas access affordable and safe banks and credit unions.
Why is financial inclusion important?
Everyone should have access to safe and trustworthy financial services in order to manage their money, gain access to credit, and make thoughtful financial decisions.
Chime® Disclosures:
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Early Pay: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Round Up: Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Qualifying Direct Deposit: The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Save When You Get Paid: Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
Tax e-file services provided by April Tax Solutions Inc. ("april") or Column Tax, Inc. ("Column Tax"). These tax filing offers are not endorsed or offered by our partners, The Bancorp Bank, N.A. or Stride Bank, N.A.
Maximum refund guarantee is provided by april or Column Tax. If you use april's service to prepare and file your return and you find an error in the tax preparation that entitles you to a larger refund (or smaller liability), you may use their service to amend that return at no additional charge. To qualify, the larger refund or smaller tax liability must not be due to differences or inaccuracies in data supplied by you, your choice not to claim a deduction or credit, positions taken on your return that are contrary to law, or changes in federal or state tax laws. See here for details. If you use Column Tax's service, Column Tax will reimburse you for up to $250 if you are able to pay less federal or state income tax or receive a larger federal or state income tax return by using another tax return preparation provider. Eligibility requirements apply. See terms for details.
If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
There are no fees required to use this product. Chime does not require you to deposit your refund into your Chime Account to qualify for free tax filing. Certain costs may be incurred if you decide to obtain other optional financial products offered in relation to your tax filing. The Internal Revenue Service (IRS) may impose penalties or other charges depending on your personal tax situation. If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
Chime does not guarantee timing of refund. Six day refund estimate is based on 2023 tax year filing data. Refund timing estimates are dependent upon timing of complete tax return submission and when the IRS submits your refund.
1. Up to $400 Bonus Tiered Disclosure New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/
2. APY disclosures Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26.. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
3. Fee Policy We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
4. Additional FDIC Insurance (must be bolded) SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
5. ATM Access We've partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi's ATM policies are subject to change at our discretion at any time. 6. Early Access to Direct Deposit Funds Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
7. Overdraft Coverage Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non- debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
8. 0.90% Savings APY Boost Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC.
