FEDERAL DEPOSIT INSURANCE CORPORATION 

2021 

FDIC National Survey of 

Unbanked and Underbanked 

Households 

Executive Summary

2021 FDIC National Survey of Unbanked and Underbanked Households | I 

2021 FDIC National Survey of Unbanked and Underbanked Households

Acknowledgments 

This report presents results from the 2021 FDIC National 

Survey of Unbanked and Underbanked Households. The survey 

has been conducted biennially since 2009 in partnership 

with the U.S. Census Bureau. 

The report was conducted under the careful direction 

of Karyen Chu of the FDIC’s Division of Insurance and 

Research. The primary authors of the report were Mark 

Kutzbach, Joyce Northwood, and Jeffrey Weinstein. Susan 

Burhouse and Yazmin Osaki authored the Implications and 

Conclusions section. 

I would like to thank the many FDIC senior officials and 

staff who provided valuable feedback, analytical support, 

research assistance, website development, and publication 

support, including Neeta Allagh, Hunter Brazal, Alys 

Brown, Keith Ernst, Richard Foley, David Friedman, Ryan 

Goodstein, Jonathan Miller, Lynne Montgomery, Dhruv 

Sharma, Donna Vogel, Lauren Whitaker, and Kathy Zeidler. 

Finally, we thank the staff of the Current Population 

Survey (CPS) at the U.S. Census Bureau who worked closely 

with the FDIC to ensure successful execution of survey data 

collection and processing. 

Mark Pearce 

Director, Division of Depositor and Consumer Protection 
II | 2021 FDIC National Survey of Unbanked and Underbanked Households 

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2021 FDIC National Survey of Unbanked and Underbanked Households | 1 

2021 FDIC National Survey of Unbanked and Underbanked Households

1. Executive Summary 

The FDIC is committed to expanding Americans’ access 

to safe, secure, and affordable banking services, which is 

integral to the FDIC’s mission of maintaining the stability 

of and public confidence in the U.S. financial system. The 

FDIC National Survey of Unbanked and Underbanked Households, conducted biennially since 2009 in partnership with 

the U.S. Census Bureau, is one contribution to this end. The 

most recent survey was conducted in June 2021, collecting 

responses from more than 30,000 households. 

This executive summary presents key results from the 

survey, covering bank account ownership; use of prepaid 

cards and nonbank online payment services; use of nonbank money orders, check cashing, and money transfer 

services; and use of bank and nonbank credit. The executive summary also summarizes the implications of these 

results for policymakers, financial institutions, and other 

stakeholders who are working to improve access to safe, 

secure, and affordable banking services. 

National Unbanked Rate 

• An estimated 4.5 percent of U.S. households were 

“unbanked” in 2021, meaning that no one in the 

household had a checking or savings account at a bank 

or credit union (i.e., bank). This proportion represents 

approximately 5.9 million U.S. households. Conversely, 95.5 percent of U.S. households were “banked” in 

2021, meaning that at least one member of the household had a checking or savings account at a bank. This 

proportion represents approximately 126.6 million U.S. 

households. 

• The proportion of U.S. households that were unbanked 

(i.e., the unbanked rate) in 2021—4.5 percent—was the 

lowest since the survey began in 2009, as shown in 

Figure ES.1. Between 2019 and 2021, the unbanked rate 

fell 0.9 percentage points, corresponding to an increase 

of approximately 1.2 million banked households.1 

» About one-third of the decline in the unbanked rate 

between 2019 and 2021 was associated with changes 

in the socioeconomic circumstances of U.S. households over this period, particularly increases in 

income and educational attainment.2 

• Between 2011—when the unbanked rate was at its 

highest level since the survey began—and 2021, the 

unbanked rate fell 3.7 percentage points, corresponding to an increase of approximately 5.0 million banked 

households. 

» About half of the decline in the unbanked rate 

between 2011 and 2021 was associated with changes 

in the socioeconomic circumstances of U.S. households over this period. 

Figure ES.1 National Estimates, Household Unbanked 

Rate, 2009–2021 (Percent) 

Unbanked Rates by Household Characteristics

• Consistent with the results of previous surveys, 

unbanked rates in 2021 varied considerably across the 

U.S. population. For example, unbanked rates were 

higher among lower-income households, less-educated households, Black households, Hispanic house1

 All differences discussed in the text are statistically significant at the 10 percent level unless noted otherwise. In other words, there is a 10 percent or lower 

probability that an observed difference between two groups of households is due to random sampling. 

2 Even after the changes in socioeconomic characteristics were accounted for, the remainder of the decline in the unbanked rate across years was statistically 

significant. 
2 | 2021 FDIC National Survey of Unbanked and Underbanked Households 

holds, working-age households with a disability, and 

single-mother households.3 

» Differences in unbanked rates between Black 

and White households and between Hispanic and 

White households in 2021 were present at every 

income level, as shown in Figure ES.2. For example, 

among households with income between $30,000 

and $50,000, 8.0 percent of Black households and 

8.4 percent of Hispanic households were unbanked, 

compared with 1.7 percent of White households. 

» For working-age households with a disability, 

the unbanked rate in 2021 was 14.8 percent, much 

higher than the unbanked rate among working-age 

households without a disability (3.7 percent). 

» For single-mother households, the unbanked rate 

in 2021 was 15.9 percent, much higher than the 

unbanked rate among married couple households 

(1.8 percent). 

Unbanked Households: Reasons for Not Having a Bank 

Account 

As in previous years, the 2021 survey asked unbanked 

households about their reasons for not having a bank 

account. 

• As illustrated in Figure ES.3, “Don’t have enough 

money to meet minimum balance requirements” was 

the most cited reason and was also the most cited main 

reason by unbanked households for not having an 

account in 2021. The proportion of unbanked households that cited this reason as the main reason for not 

having an account decreased between 2019 (29.0 percent) and 2021 (21.7 percent). 

• “Don’t trust banks” was the second-most cited main 

reason for not having an account in 2021, and “Avoiding 

a bank gives more privacy” was the third-most cited 

main reason. 

• Almost three in ten unbanked households in 2021 

(29.2 percent) cited a reason related to fees or a minimum balance—“Bank account fees are too high,” 

“Bank account fees are too unpredictable,” or “Don’t 

have enough money to meet minimum balance 

requirements”—as the main reason for not having an 

account, down from 38.0 percent in 2019. 

Figure ES.2 Unbanked Rates by Income Level and Race and Ethnicity, 2021 (Percent) 

All 

Less Than $15,000 

$15,000 to $30,000 

$30,000 to $50,000 

$50,000 to $75,000 

At Least $75,000 

3

 For person-level characteristics, such as race, age, and education, the characteristics of the householder (generally the person or one of the people in whose 

name the home is owned or rented) are used to represent the household. For convenience, abbreviated language is used in referring to certain household 

characteristics. For example, the term “Hispanic household” refers to a household for which the householder identifies as Hispanic or Latino regardless 

of race, and the term “Black household” refers to a household for which the householder identifies as Black or African American alone and not Hispanic or 

Latino. The term “working-age household with a disability” refers to a household for which the householder has a disability and is between the ages of 25 and 

64. The term “single-mother household” refers to a family household with an unmarried female householder, no other adults, and one or more children. See 

Appendix 1 for additional details.
2021 FDIC National Survey of Unbanked and Underbanked Households | 3 

Figure ES.3 Unbanked Households’ Reasons for Not Having a Bank Account, 2021 (Percent) 

16.8 

16.8 

17.7 

21.5 

2.7 

11.6 

5.3 

13.6 

4.4 

15.4 

2.4 

19.2 

1.5 

27.3 

6.0 

29.5 

13.2 

33.0 

8.4 

34.1 

21.7 

40.1 

Cited Main 

Table ES.1 Transitions in Bank Account Ownership, 2021 

All Households, Row Percent 

Don't Have Enough Money to Meet

Minimum Balance Requirements 

Avoiding a Bank Gives More Privacy 

Don't Trust Banks 

Bank Account Fees Are Too High 

Bank Account Fees Are Too Unpredictable 

Banks Do Not Offer Needed 

Products and Services 

Bank Locations Are Inconvenient 

Problems With Past Banking or Credit History 

Don't Have Personal Identification 

Required to Open an Account 

Other Reason 

Did Not Select a Reason 

COVID-19 Pandemic and Transitions in Bank Account 

Ownership 

The survey took place in June 2021, 15 months after the 

COVID-19 pandemic began. New questions asked households whether they experienced economic changes since 

the start of the pandemic in March 2020 and whether 

those changes contributed to the closing or opening of 

households’ bank accounts.4 

• Table ES.1 classifies households into one of four categories based on whether the household experienced 

a recent change to its bank account ownership. In 

2021, 4.0 percent of all households were longer-term 

unbanked, 0.5 percent were recently unbanked, 

4.2 percent were recently banked, and 91.4 percent 

were longer-term banked. 

» Longer-term unbanked households did not have a 

bank account at the time of the survey (in June 2021) 

or at any point in the 12 months before (between 

June 2020 and June 2021), while recently unbanked 

households did not have a bank account at the time 

of the survey but did at some point in the 12 months 

before. Recently banked households had a bank 

account at the time of the survey but did not at some 

point in the 15 months before (between March 2020 

and June 2021), while longer-term banked households had a bank account at the time of the survey 

and continually during the 15 months before. 

LongerTerm 

Unbanked 

Recently 

Unbanked 

Recently 

Banked 

LongerTerm 

Banked 

Category as 

Share of All 

Households 

4.0 0.5 4.2 91.4 

• About one-third of recently banked households 

(34.9 percent) reported that receiving a government 

benefit payment (for example, unemployment benefits 

or a pandemic stimulus payment) contributed to opening a bank account since March 2020. In other words, 

among the 77.9 percent of recently banked households 

that received a government benefit payment, almost 

half (44.8 percent)—representing approximately 

1.9 million households—said that the payment contributed to opening an account. 

• In addition, 6.3 percent of recently banked households 

reported that starting a new job contributed to opening a bank account since March 2020. That is, among 

the 19.0 percent of recently banked households that 

reported starting a new job, one-third (33.1 percent) 

indicated that the change in employment contributed 

to opening an account. 

4 For bank account closures, households might have closed their own accounts, or banks might have closed the accounts. 
4 | 2021 FDIC National Survey of Unbanked and Underbanked Households 

• Recently banked households were substantially less 

likely to report that a significant increase in income 

contributed to opening a bank account (0.9 percent), 

compared with receiving a government benefit payment or starting a new job. 

• About one in five recently unbanked households 

(21.1 percent) reported that losing or quitting a job, 

being furloughed, having reduced hours, or having a 

significant loss of income contributed to closing a bank 

account since March 2020. 

Banked Households: Primary Method Used to Access 

Bank Accounts 

As in previous years, the 2021 survey asked banked households about the primary (i.e., most common) method they 

used to access their bank accounts in the past 12 months: 

visiting a bank teller; using an ATM or bank kiosk; calling 

the bank (i.e., telephone banking); using a computer or 

tablet (i.e., online banking); using an app, text messaging, 

or internet browser on a mobile phone (i.e., mobile banking); or using some other method (i.e., other). 

• As shown in Table ES.2, use of mobile banking 

increased sharply between 2017 and 2021 and remained 

the most prevalent primary method of account access.5 

• Use of a bank teller declined considerably but remained 

prevalent among certain segments of the population, 

including lower-income households, less-educated 

households, older households, and households that did 

not live in a metropolitan area.6 

Prepaid Cards and Nonbank Online Payment Services 

As in previous years, the 2021 survey asked all households 

about their use of general purpose reloadable prepaid 

cards. New questions in the 2021 survey asked all households about their use of nonbank online payment services “with an account feature that allows you to receive 

and store money in the account.” Examples of nonbank 

online payment services are PayPal, Venmo, and Cash 

App.7 Unless otherwise stated, all online payment services 

discussed in this executive summary are from nonbank 

providers. 

• As shown in Figure ES.4, in 2021, 6.9 percent of all 

households were using prepaid cards at the time of the 

survey, and almost half of all households (46.4 percent) 

were using online payment services at the time of the 

survey.8 Use of prepaid cards was much higher and use 

of online payment services was much lower among 

unbanked households than among banked households. 

• Households can link their online payment service 

account to one or more bank accounts, credit cards, 

prepaid cards, or other services.9 Almost three-quarters of banked households with online payment services in 2021 (74.1 percent) linked their online payment 

Figure ES.4 Use of Prepaid Cards and Nonbank Online 

Payment Services by Bank Account Ownership, 2021 

(Percent) 

All Unbanked Banked 

Prepaid Card 

Nonbank Online Payment Service 

Table ES.2 Primary Method of Bank Account Access, 2017–2021 

Banked Households That Accessed Their Account in the Past 12 Months, Row Percent 

Year Bank Teller ATM/Kiosk Telephone 

Banking 

Online 

Banking 

Mobile 

Banking Other Bank Teller or ATM/Kiosk 

2017 24.8 19.5 2.9 37.0 15.1 0.7 44.3 

2019 21.0 19.5 2.4 22.8 34.0 0.3 40.5 

2021 14.9 16.0 2.9 22.0 43.5 0.7 31.0 

5 The 2017 estimates published in this report may differ from the 2017 estimates published in previous reports because this report addresses item nonresponse in 

the 2017 data through imputation, while previous reports addressed item nonresponse in the 2017 data in other ways; see Appendix 1 for details. 

6 While the 2021 survey did not include questions on the impact of the COVID-19 pandemic on the methods that banked households used to access their 

accounts, the decline in the use of a bank teller and the increase in the use of mobile banking between 2019 and 2021 are consistent with difficulties that 

households may have experienced in visiting a bank branch since the onset of the COVID-19 pandemic. For example, the social distancing guidelines 

instituted in response to the pandemic may have made bank branch visits more challenging. 

7 The survey questions on nonbank online payment services instructed households not to consider Zelle, which is a service provided by banks. 

8 In previous surveys, households were asked whether they used prepaid cards in the past 12 months. As a result, the share of households that used prepaid 

cards in 2021 is not directly comparable to the shares in previous years. 

9 For example, some online payment services can be linked to certain gift cards or other online payment services.
2021 FDIC National Survey of Unbanked and Underbanked Households | 5 

service account to their bank account. One in ten 

banked households (10.0 percent) and more than half of 

unbanked households (54.9 percent) with online payment services did not link any other types of accounts 

to their online payment service account.10 

• The 2021 survey also asked households about the types 

of transactions they conducted using prepaid cards 

and online payment services over the past 12 months. 

Specifically, households with prepaid cards or online 

payment services were asked whether they used their 

prepaid cards or online payment services to pay monthly bills like rent, mortgage, utilities, or child care (i.e., 

pay bills); receive money from work, retirement, or a 

government agency (i.e., receive income); build savings 

or keep money in a safe place (i.e., save or keep money 

safe); send money to or receive money from family or 

friends (i.e., send or receive money); make purchases in 

person; make purchases online; and for some other use. 

» Unbanked households were more likely to use 

prepaid cards to conduct multiple types of transactions. Almost half of unbanked households with 

prepaid cards (47.6 percent) used them to conduct 

four or more types of transactions in the past 

12 months, among the six specific types of transactions in the survey (i.e., excluding “some other 

use”), almost twice the share of banked households 

with prepaid cards (24.7 percent). 

» Unbanked households were also more likely to use 

online payment services to conduct multiple types 

of transactions. Almost half of unbanked households with online payment services (47.4 percent) 

used them to conduct four or more types of transactions in the past 12 months, more than twice the 

share of banked households with online payment 

services (19.9 percent). About one in seven unbanked 

households with online payment services (14.9 percent) used them to conduct all six specific types of 

transactions in the survey. 

Nonbank Money Orders, Check Cashing, and Money 

Transfer Services 

As in previous years, the 2021 survey asked all households 

about their use of nonbank money orders and nonbank 

check cashing in the past 12 months. A new question in the 

2021 survey asked all households about their use of nonbank money transfer services in the past 12 months from 

companies like Western Union, MoneyGram, Walmart 

Money Center, or Ria Money Transfer. Unless otherwise 

stated, all money orders, check cashing, and money transfer services discussed in this executive summary are from 

nonbank providers. 

• Use of money orders and check cashing declined 

steadily between 2017 and 2021 (see Figure ES.5). In 

2021, 9.7 percent of all households used money orders, 

and 3.2 percent of all households used check cashing. 

In addition, 7.0 percent of all households used money 

transfer services in 2021. 

• Use of money orders, check cashing, and money transfer 

services in 2021 were more common among unbanked 

households. Almost one-third of unbanked households (32.3 percent) used money orders, compared with 

8.7 percent of banked households. Unbanked households 

were almost ten times as likely to use check cashing 

(21.8 percent) as banked households (2.3 percent). About 

one in seven unbanked households (15.5 percent) used 

money transfer services, more than double the share of 

banked households (6.6 percent). 

Figure ES.5 Use of Nonbank Money Orders and Check 

Cashing, 2017–2021 (Percent) 

How Households Pay Bills or Receive Income 

Paying bills and receiving income are core financial transactions that most households conduct regularly. The 2021 

survey included new questions that asked households about 

their use of bank accounts, online payment services, prepaid cards, money orders, and money transfer services to 

pay monthly bills like rent, mortgage, utilities, or child care 

(i.e., pay bills) over the past 12 months. In addition, the 2021 

survey included new questions that asked households about 

their use of bank accounts, online payment services, prepaid cards, and check cashing to receive money from work, 

retirement, or a government agency (i.e., receive income) 

over the past 12 months. 

10 Households can use online payment services without having them linked to another account. For example, online payment services can be used to send 

or receive money between family, friends, or businesses. Some of these services offer direct deposit, remote deposit, or both. Some also offer check cashing 

using remote deposit.
6 | 2021 FDIC National Survey of Unbanked and Underbanked Households 

• Almost all banked households (97.1 percent) used their 

bank accounts to pay bills or receive income in 2021, and 

three in four banked households (75.2 percent) exclusively used their bank accounts to conduct these transactions. One in seven banked households (14.7 percent) used 

online payment services, alone or in combination with 

other methods, to pay bills or receive income. 

» Households with less than $15,000 in income, 

households with no high school diploma, households aged 34 or younger, Black and Hispanic 

households, working-age households with a disability, and unemployed households were the least 

likely to exclusively use their bank accounts to pay 

bills or receive income. However, roughly two in 

three banked households in each of these population segments exclusively used their bank accounts 

to conduct these transactions. 

• About half of unbanked households (56.4 percent) used 

at least one of the methods included in the survey to 

pay bills or receive income. Specifically, three in ten 

unbanked households (28.9 percent) used prepaid 

cards to pay bills or receive income, and a similar share 

(29.6 percent) used money orders to pay bills. Smaller percentages of unbanked households used online 

payment services, check cashing, or money transfer 

services to pay bills or receive income. Other methods 

that unbanked households could have used to pay bills 

or receive income that were not included in the 2021 

survey are cash and credit cards. 

Bank and Nonbank Credit 

The 2021 survey examines household use of credit, focusing on products that households may use to address cashflow imbalances, unexpected expenses, or temporary 

income shortfalls.11 Households were asked whether, in 

the past 12 months, they had a Visa, MasterCard, American Express, or Discover credit card (i.e., a credit card); 

a personal loan or line of credit from a bank (i.e., a bank 

personal loan); or a personal loan or line of credit from 

a company other than a bank (i.e., a nonbank personal 

loan).12 Households were also asked whether they used, in 

the past 12 months, the following nonbank credit: rent-toown services or payday, pawn shop, tax refund anticipation, or auto title loans. 

• In 2021, 71.5 percent of households had a credit card, 

similar to the proportion in 2019 (71.3 percent) and 

above the 2017 level (68.5 percent). The share of households that had a bank personal loan decreased from 

10.8 percent in 2019 to 8.0 percent in 2021. Altogether, 

72.5 percent of households in 2019 and 72.3 percent of 

households in 2021 had a credit card or bank personal 

loan. In addition, 2.8 percent of households had a nonbank personal loan in 2021. 

• Differences by race and ethnicity in the likelihood 

of having a credit card or bank personal loan were 

present at every income level, as shown in Figure ES.6. 

For example, even among households with income 

between $50,000 and $75,000, 64.8 percent of Black 

households and 71.2 percent of Hispanic households 

had a credit card or bank personal loan, whereas 

81.3 percent of White households did so. 

• Use of rent-to-own services and payday, pawn shop, 

tax refund anticipation, and auto title loans all 

decreased between 2017 and 2021. About 1 percent of 

households in 2021 used each product or service. The 

proportion of households that used at least one of the 

five products or services declined sharply from 7.4 percent in 2017, to 4.8 percent in 2019, and to 4.4 percent 

in 2021. 

• As shown in Figure ES.7, the proportion of unbanked 

households that used a rent-to-own service or a payday, pawn shop, tax refund anticipation, or auto title 

loan decreased substantially between 2017 and 2021. 

Despite this decline, use of these nonbank credit products or services in 2021 continued to be more prevalent 

among unbanked households than among banked 

households.13 

• The 2021 survey included new questions on loan 

amounts. Specifically, households that had a bank personal loan in the past 12 months were asked whether 

their most recent bank personal loan was for $1,000 

or less or for more than $1,000. Likewise, households 

that had a nonbank personal loan in the past 12 months 

were asked whether their most recent nonbank personal loan was for $1,000 or less or for more than 

$1,000. For most households that had a bank or nonbank personal loan, the amount of the most recent loan 

was more than $1,000. 

11 The 2021 survey did not collect information on mortgages, auto loans, and student loans. 

12 Personal loans or lines of credit from companies other than banks include loans or lines of credit offered online or through storefront locations by nonbank 

finance companies. These loans or lines of credit may be marketed to prime or subprime borrowers. Payday, pawn shop, and auto title loans are not included 

in this category of credit. 

13 The difference in the likelihood of using a rent-to-own service or a payday, pawn shop, tax refund anticipation, or auto title loan in 2021 between unbanked 

and banked households was associated primarily with differences in income and other characteristics of U.S. households. This difference by bank account 

ownership was no longer statistically significant after differences in the household characteristics shown in Table 3.6 were accounted for.
2021 FDIC National Survey of Unbanked and Underbanked Households | 7 

Figure ES.6 Use of a Credit Card or Bank Personal Loan by Income Level and Race and Ethnicity, 2021 (Percent) 

Black Hispanic White 

All 

Less Than $15,000 

$15,000 to $30,000 

$30,000 to $50,000 

$50,000 to $75,000 

At Least $75,000 

• One in four households (25.5 percent) did not use any 

of the credit products included in the 2021 survey, as 

shown in Table ES.3. Among households with less than 

$30,000 in income, half did not use any of the credit 

products included in the survey, almost triple the percentage among households with income of $30,000 or 

more (18.2 percent). Nearly half of households with less 

than $30,000 in income (43.7 percent) had a credit card 

in 2021, by far the most prevalent type of credit among 

the credit products included in the survey. 

• For households with less than $30,000 in income that 

did not have a credit card, the vast majority (88.8 percent) did not use any of the credit products included 

in the 2021 survey (see Table ES.4).14 One in twelve 

households with less than $30,000 in income that did 

not have a credit card (8.3 percent) used a rent-to-own 

service or a payday, pawn shop, tax refund anticipation, 

or auto title loan. Much smaller percentages—1.1 percent 

or less—had each of the four types of bank and nonbank 

personal loans. 

Underbanked Households 

• An estimated 14.1 percent of U.S. households—representing approximately 18.7 million households—were 

“underbanked” in 2021, meaning that the household 

89.6 

84.7 

74.8 

81.3 

71.2 

64.8 

74.5 

55.9 

49.4 

62.0 

39.2 

34.1 

43.9 

23.6 

18.6 

78.8 

60.0 

49.9 

Figure ES.7 Use of a Rent-to-Own Service or a Payday, 

Pawn Shop, Tax Refund Anticipation, or Auto Title Loan 

by Bank Account Ownership, 2017–2021 (Percent) 

was banked and in the past 12 months used at least one 

of the following nonbank transaction or credit products or services that are disproportionately used by 

unbanked households to meet their transaction and 

credit needs: 

» Money orders, check cashing, or international 

remittances (i.e., nonbank transactions) or 

» Rent-to-own services or payday, pawn shop, tax 

refund anticipation, or auto title loans (i.e., nonbank 

credit).15 

14 In 2021, 23.0 percent of all households had less than $30,000 in income. Of these households, 56.3 percent (or 12.9 percent of all households) did not have a 

credit card and 43.7 percent (or 10.0 percent of all households) had a credit card. 

15 International remittances consist of money transfer services to send money to or receive money from family or friends outside the United States. 
8 | 2021 FDIC National Survey of Unbanked and Underbanked Households 

 

Credit 

Card 

Bank 

Personal Loan, 

Most Recent Loan

$1,000 or Less 

Bank 

Personal Loan, 

Most Recent Loan 

More Than $1,000

Nonbank 

Personal Loan, 

Most Recent Loan 

$1,000 or Less 

Nonbank 

Personal Loan, 

Most Recent Loan 

More Than $1,000 

Rent-toOwn Service 

or Payday, 

Pawn Shop, 

Tax Refund 

Anticipation, 

or Auto Title 

Loan 

No 

Credit

All 

Family Income 

Less Than $30,000 

At Least $30,000 

71.5 

43.7 

79.8 

1.3 

1.0 

1.3 

6.7 

2.4 

8.0 

0.6 

0.9 

0.5 

2.2 

1.2 

2.4 

4.4 

6.9 

3.7 

25.5 

50.0 

18.2 

Table ES.3 Use of Credit by Income Level, 2021 

All Households, Row Percent 

Note: Households may have used credit products that were not included in the 2021 survey. 

Table ES.4 Use of Credit Among Households With Less Than $30,000 in Income by Credit Card Ownership, 2021 

Households With Less Than $30,000 in Income, Row Percent 

Bank 

Personal Loan, 

Most Recent Loan 

$1,000 or Less 

Bank 

Personal Loan, 

Most Recent Loan

More Than $1,000 

Nonbank 

Personal Loan, 

Most Recent Loan

$1,000 or Less 

Nonbank 

Personal Loan, 

Most Recent Loan 

More Than $1,000 

Rent-toOwn Service 

or Payday, 

Pawn Shop, 

Tax Refund 

Anticipation, 

or Auto Title 

Loan 

No 

Credit 

All 

Credit Card Ownership 

Does Not Have Credit Card 

Has Credit Card 

1.0 

0.6 

1.6 

2.4 

1.1 

4.2 

0.9 

1.1 

0.7 

1.2 

0.8 

1.7 

6.9 

8.3 

5.1 

50.0 

88.8 

0.0 

Note: Households may have used credit products that were not included in the 2021 survey. 

• An estimated 81.5 percent of U.S. households— 

representing approximately 107.9 million 

households—were “fully banked” in 2021, meaning 

that the household was banked and in the past 

12 months did not use any of the above nonbank 

transactions and credit.16 

• Underbanked households can be segmented into three 

groups—nonbank transactions only, nonbank credit 

only, and nonbank transactions and credit—based on 

their use of the above nonbank transactions and credit. 

Among underbanked households in 2021, 71.6 percent 

used only nonbank transactions, 18.0 percent used only 

nonbank credit, and 10.3 percent used both nonbank 

transactions and credit.17 

• As the primary method of bank account access, use 

of mobile banking was higher among underbanked 

households (48.8 percent) than among fully banked 

households (42.5 percent). Use of mobile banking as 

the primary method of account access was higher in 

all three underbanked segments, compared with fully 

banked households, and was highest among underbanked households that used both nonbank transactions and credit (53.1 percent). 

16 Underbanked and fully banked rates in 2021 are not directly comparable to underbanked and fully banked rates in previous years because of changes to the 

questions on international remittances. See Appendix 2 for details. Excluding the use of international remittances, the underbanked rate would have been 

12.3 percent in 2021, 14.6 percent in 2019, and 18.1 percent in 2017. The decline between 2017 and 2021 was statistically significant. 

17 Underbanked households in the three segments may have used nonbank transactions or credit not included in the categorization of underbanked 

households, such as online payment services, money transfer services for transactions other than sending or receiving international remittances, or nonbank 

personal loans.
2021 FDIC National Survey of Unbanked and Underbanked Households | 9 

 

 

• Use of online banking as the primary method of 

account access was much lower among underbanked 

households (11.6 percent) than among fully banked 

households (23.8 percent). Among the three underbanked segments, underbanked households that used 

both nonbank transactions and credit had the lowest use of online banking as the primary method of 

account access (4.2 percent). 

• Similar proportions of underbanked households 

(15.0 percent) and fully banked households (14.9 percent) used a bank teller as the primary method of 

account access. 

• As shown in Table ES.5, almost all underbanked 

households (96.1 percent) and fully banked households (97.3 percent) used their bank accounts to pay 

bills or receive income. However, while 81.6 percent of 

fully banked households exclusively used their bank 

accounts to conduct these transactions, only 38.1 percent of underbanked households did so. 

• The share of underbanked households that exclusively 

used their bank accounts to pay bills or receive income 

varied widely across the three underbanked segments. 

Among underbanked households that used only nonbank credit, roughly two-thirds (68.0 percent) exclusively used their bank accounts to pay bills or receive 

income, compared with 33.9 percent of underbanked 

households that used only nonbank transactions and 

14.7 percent of underbanked households that used both 

nonbank transactions and credit. 

• Underbanked households were less likely to have a 

credit card and were more likely to have both bank and 

nonbank personal loans than fully banked households 

in 2021. For example, 62.4 percent of underbanked 

households had a credit card, compared with 76.6 percent of fully banked households. One in ten underbanked households (10.0 percent) had a bank personal 

loan, compared with 8.0 percent of fully banked households. And 5.6 percent of underbanked households had 

a nonbank personal loan, compared with 2.4 percent of 

fully banked households. 

Implications 

The financial disruptions due to the COVID-19 pandemic 

created unique opportunities and challenges for economic 

inclusion, some of which may be temporary, while others 

may be longer lasting. The importance of quickly receiving 

income from Economic Impact Payments or other government relief programs created a unique bankable moment, 

and consumers benefited from enhanced online and mobile 

account opening technologies and the greater availability 

of safe and affordable bank accounts. This combination of 

factors resulted in meaningful gains in connecting households to the banking system. 

Health and safety concerns regarding in-person interactions during the pandemic may have accelerated the longterm trend of increasing use of mobile and online channels 

to access financial products and services, such as mobile 

banking and online payment services. As the pandemic 

wanes, it will be important to carefully monitor whether 

the shift from in-person activity continues, stabilizes, or 

subsides. 

Beyond impacts directly tied to the pandemic, the financial services marketplace continues to become more 

disaggregated, and consumers are bundling services and 

providers (bank and nonbank) in new and interesting 

ways. This disaggregation may provide greater choices for 

consumers but also may make it more difficult for consumers to clearly distinguish differences between bank 

and nonbank products and to understand the protections available, such as deposit insurance. The economic 

inclusion implications of disaggregation on different 

Table ES.5 Methods Used to Pay Bills or Receive Income Among Underbanked and Fully Banked Households, 2021 

Underbanked and Fully Banked Households, Row Percent 

Any 

Method 

Bank 

Account 

Bank 

Account 

Only 

Nonbank 

Online 

Payment 

Service 

Prepaid 

Card 

Nonbank 

Money 

Order 

Nonbank 

Check 

Cashing 

Nonbank 

Money 

Transfer 

Service 

Underbanked 98.5 96.1 38.1 18.8 6.5 40.4 9.9 6.2 

Underbanked, Nonbank Transactions Only 98.7 96.5 33.9 16.8 5.1 47.5 10.5 6.5 

Underbanked, Nonbank Credit Only 97.1 96.3 68.0 23.3 6.8 0.0 0.0 2.1 

Underbanked, Nonbank Transactions and 

Credit 99.1 93.2 14.7 24.4 16.3 61.2 23.5 11.3 

Fully Banked 97.6 97.3 81.6 14.0 1.9 0.0 0.0 0.7 
10 | 2021 FDIC National Survey of Unbanked and Underbanked Households 

segments of the population bear further research and 

highlight the need to learn more about how consumers are 

navigating the choices presented to them by the evolving 

marketplace. 

1. Despite economic challenges posed by the pandemic, 

more consumers became banked and sustained their 

banking relationship through financial distress. The 

importance of quickly receiving government payments 

contributed to decisions by many unbanked consumers 

to open bank accounts. Focusing on opportunities to 

connect consumers to safe and affordable bank accounts 

when they are receiving income and other government payments continues to be a promising economic 

inclusion strategy. Enhancements to online account 

opening technology deployed during the pandemic and 

the increased availability of low-cost accounts in recent 

years also may facilitate these banking efforts. Disruptions in income had a smaller impact in exits from 

the banking system than previous survey results might 

suggest, and further research is needed to explore the 

reasons for this smaller than expected impact, including 

strategies banks used to assist low- and moderate-income (LMI) consumers navigate short-term financial 

shocks. 

2. Household use of some nonbank financial services, such 

as check cashing and certain consumer credit products, has declined significantly over the past decade. 

A combination of factors may be driving these trends, 

including reduced demand from changing needs, 

increased participation in the banking system, or the 

increasing supply of other, new nonbank products and 

services, many of which can be found online or through 

mobile applications. Much remains to be learned about 

consumer choices and the factors that are motivating them. Additional research into these choices and 

motivations is vital to ensuring that economic inclusion 

efforts evolve to address consumers’ changing needs 

and preferences. 

3. While many banked households appear to use nonbank 

online payment services such as PayPal, Venmo, and 

Cash App to complement banking products, unbanked 

households may be using them as substitutes for banking or other financial services. These use cases have 

different economic inclusion implications but highlight 

that it is important for all consumers to understand 

limits and applicability of consumer protections, especially deposit insurance. 

FDIC-007-2022

Federal Deposit Insurance Corporation