Bank like a financial pro with the Alliant mobile app. Make payments, deposit checks, manage cards and so much more.
Renovate your kitchen, pay off high-interest debt, or have access to emergency funds when you need it with an Alliant Home Equity Line of Credit.
Browse new and used vehicle inventory, and qualify for a rate discount when you buy!81
Separate each of your savings goals into an Alliant Supplemental Savings Account so you can visualize your progress.
By Anne Purcell
For some people, storing money in a bank or credit union is second nature. Others, not so much. The idea of being unbanked refers to those who do not have a checking or savings account at a bank or credit union. According to data from the FDIC, 4.5 percent of U.S households were unbanked in 2021.
Despite there being so many banks and credit unions spread across the country, many choose not to use them or don't have the resources or education on the benefits of using a primary financial institution. Instead of banks or credit unions, these individuals may use alternative ways, such as prepaid cards, online payment services like PayPal, Venmo or Zelle, cash, or other nonbank alternatives to complete their financial needs. While these resources may get the job done when paying bills or funding your basic needs, there are still many benefits to having at least some of your money in a bank or credit union.
There are many reasons people could be unbanked, some out of a person's control and others by choice. For example, some people are unbanked due to being flagged from a not-so-great financial background. However, even if that is the case, some financial institutions are designing programs to help those who this might affect.
Other reasons could be one of the following:
If you are unbanked and interested in opening an account at a bank or credit union, it is important to research what is important to you as an individual. Some banks or credit unions are fully digital, like Alliant, while others have in-person branches where you can go to complete your banking needs. Before choosing a bank or credit union, it is also important to research things like interest rates, credit card options, minimum requirements, perks, etc. before making your decision.
Having a primary financial institution, whether that’s a bank or credit union, to store your money, save and invest can help enhance your financial portfolio. Many banks and credit unions offer much more than savings and checking accounts, such as credit and debit cards, car loans, mortgages and certificates (also known as CD’s). Putting your money into a financial institution can help you grow your money through interest or build better credit through credit cards. It can also simplify making payments on loans and mortgages if you use the same financial institution.
Many people have opinions about banking and whether it is best for them. While there are many benefits to putting your money into a bank or credit union, there is no need to jump right in and sign up for an account. Think about your financial goals and make decisions based on what you want your financial future to look like. Find a bank or credit union that will help make those plans a reality through the resources they provide.
Read more about banking tips:
Get even more personal finance info, tips and tricks delivered right to your inbox each month.
Thanks for subscribing to Alliant's Money Mentor newsletter! You will now receive personal finance tips in your email inbox each month.
You are leaving Alliant’s website to enter a website hosted by an organization separate from Alliant Credit Union. The products and services on this website are being offered through LPL Financial or its affiliates, which are separate entities from, and not affiliates of, Alliant Credit Union.The privacy and security policies of the site may differ from those of Alliant Credit Union.
You are leaving an Alliant Credit Union website and are about to enter a website operated by a third-party, independent from Alliant Credit Union. Alliant Credit Union does not manage the operation or content of the website you are about to enter. Alliant Credit Union is not responsible for the content and does not provide any products or services at this third-party website. The privacy and security policies of the site may differ from those of Alliant Credit Union.