2021’s FDIC National Survey of Unbanked and Underbanked Households – African America’s Highlights

• Among households with income between $30,000 and $50,000, 8.0 percent of African American households were unbanked compared with 1.7 percent of European American households.
• Despite being the lowest unbanked group at 1.7 percent, African Americans earning $75,000 or more are still almost 600 percent more unbanked than their European American counterparts at the same income level. The largest gap among all income levels reported.
• Among households with income between $50,000 and $75,000, 64.8 percent of African American households had a credit card or bank personal loan, whereas 81.3 percent of European American households did so.
• Unbanked among African Americans has dropped from 16.8 percent in 2017 down to 11.3 percent in 2021. A reduction of almost 33 percent. European Americans have the lowest unbanked rate at 2.1 percent followed by Asian Americans at 2.9 percent.
• 21.4 percent of African American single-mother households were unbanked in 2021, compared with 8.0 percent of European American single-mother households.
• Interest in having a bank account was also higher among African American unbanked households (32.0 percent were very or somewhat interested in having an account in 2021).
• African American households comprised 12.8 percent of the overall household population, they made up 41.1 percent of the recently unbanked.
• Use of Prepaid Cards by Bank Account Ownership and Selected Household Characteristics was highest among African Americans at 12.3 percent and lowest among Asian Americans at 4.6 percent.
• Three in four African American banked households (76.5 percent) used bank accounts to save or keep money safe, a lower share than among households of other races and ethnicities. For example, 85.2 percent of European American banked households saved or kept money safe using bank accounts in 2021.
• African American banked households saved or kept money safe using prepaid cards compared with 1.2 percent of European American banked households.
• In 2021, 49.9 percent of African American households had a credit card or bank personal loan, compared with 78.8 percent of European American households.
• 36 percent of African American households are underbanked/unbanked.
• Rent-to-Own Service or Payday, Pawn Shop, Tax Refund Anticipation, or Auto Title Loan is used by 7.6 percent of African American households.

To read the full FDIC National Survey of Unbanked and Underbanked Households, click here.