More Americans Currently Banking, Saving and “Doing Better”

(WASHINGTON, DC) As economic growth continues, the number of Americans who choose to not use a conventional bank declines. According to the Federal Reserve’s Annual Report on the Economic Well-Being of U.S. Households, six percent of Americans use no bank – down from two percent three years ago. Meanwhile, the number of “underbanked” Americans, representing those with a bank account but who use alternative financial services like money orders or check cashing dropped five points to 16 percent in 2018. The survey revealed that 61 percent of respondents could cover a $400 emergency expense in cash. Seven in ten respondents said they could cover three months of expenses from savings alone or from a combination of savings, assets, and credit if they lost their main source of income. Yet, 26 percent of non-retired Americans have no retirement savings or pension. Overall, three-quarters of U.S. households surveyed last fall said they are “doing okay” or “living comfortably.” This is up 12 percentage points from six years ago. Meanwhile, 31 percent said they were better off than the year before, while 13 percent reported being worse off.