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07/11/2023

The high cost for fraud and fees for the 'unbanked'

Fox 5 Atlanta

The FDIC reports that about 6 million Americans are "unbanked." That means they have no savings or checking accounts. This kind of money management can be unsafe and expensive.

Households categorized as unbanked still get paid. They still have to cash checks, and to pay bills. But, generally, those millions of people use substitute services that cost them a lot of money in fees.

About 4.5 percent of American households pay bills with Venmo, CashApp, and pre-paid cards. Many of us use those same services to pay babysitters or to split meal costs, but putting all of your money in these resources doesn’t provide the financial protection like you get with an FDIC backed account.

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