Financial Inclusion: Access to Bank Accounts (CRS Report for Congress)
| Release Date |
Revised Aug. 2, 2024 |
| Report Number |
IF11631 |
| Report Type |
In Focus |
| Authors |
Karl E. Schneider |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Most U.S. consumers choose to open a bank account, such
as a checking or savings account, because it is considered a
safe and secure way to store money, particularly as the
Federal Deposit Insurance Corporation (FDIC) insures up
to $250,000 per depositor against an institution’s failure. In
addition, consumers gain access to payment services
through checking accounts, such as the ability to make
electronic payments online, direct deposit, paper checks,
and frequently a debit card.
For most consumers, a bank account is less expensive than
alternative ways to access these types of services. Checking
and savings accounts are often the first relationships that a
consumer has with a financial institution, which can later
progress into other types of financial products and services,
such as loan products or financial investments. A key policy
question is whether the unbanked population is interested in
banking services but unable to access them and, if so, what
is the most effective way to bring more unbanked
households into the fold. Legislation introduced in the 118th
Congress aims to address this issue through different
means. H.R. 758 aims to incentivize new bank formation by
reducing barriers to entry, while H.R. 8740 would direct the
Consumer Financial Protection Bureau to identify the
causes leading to and solutions for unbanked households.
