Tracking Banking Access Using the Bank On National Data Hub

According to a 2023 national survey (PDF) by the Federal Deposit Insurance Corp., an estimated 4.2% of U.S. households—or 5.6 million—do not have a checking or savings account.A household was considered “unbanked” if no one in it had a checking or savings account at a bank or credit union. This share is significantly higher among certain populations: In the same survey, 10.6% of Black households and 12.2% of American Indian or Alaska Native households were reported to be unbanked. Additionally, 21.8% of households with annual incomes of less than $15,000 were unbanked.

The costs of maintaining a bank account, which may include overdraft fees, can pose a challenge for households living paycheck to paycheck. Yet, having a checking account is increasingly essential in today’s economy.

• Nearly 92% of respondents to a 2024 payroll survey reported being paid via direct deposit. Dividends and other financial payments are also typically delivered in this way.
• The federal government now uses electronic payment to disburse public benefits. Effective Sept. 30, 2025, the government eliminated paper checks for most federal benefits, including Social Security and VA payments.
• Lenders are increasingly using cash flow analysisThis involves examining bank transactions (inflows/outflows) to determine the creditworthiness of individuals, including those with thin or no credit files. when evaluating loan applications, making banking history more important for accessing credit.

Bank On and Affordable Banking Efforts

Bank On accounts, which are certified by the nonprofit Cities for Financial Empowerment Fund, are offered by more than 500 financial institutions as a pathway for anyone to own a checking account. Bank On national account standards (PDF) include a minimum opening deposit of $25 or less, no overdraft fees and no low-balance fees. Since 2018, the Federal Reserve Bank of St. Louis has maintained the Bank On National Data (BOND) Hub, which collects information on the number, location (ZIP code) and usage of Bank On-certified accounts. In 2025, a total of 45 financial institutions of various sizes voluntarily reported their 2024 usage data to the BOND Hub. The following sections highlight recent trends observed in Bank On accounts.

Bank On Accounts: Coverage, Openings and Closings

Based on the most recent BOND Hub data, from 2024, Bank On account holders span all 50 states. Their geographic distribution is extensive, covering more than 98% of U.S. counties and over 91% of ZIP codes. Two important points about these statistics: They reflect account holders’ residences, not the location of participating financial institutions, and they include only those Bank On-certified accounts reported to the BOND Hub.

Bank On account openings grew substantially in 2024, surpassing 4.8 million—a 20% increase from 2023. This growth was primarily organic, as financial institutions reporting in both years showed a 19% increase in openings. Only a small portion of overall growth came from newly reporting financial institutions that joined the BOND Hub in 2024. For context, there was virtually no change in account openings between 2022 and 2023. Florida, Nevada and New Jersey were the states with the highest number of account openings per capita in 2024.

Meanwhile, account closings fell from 21% in 2023 to 15% in 2024—the lowest rate recorded since the BOND Hub launched in 2018.Account closing rates are calculated by dividing the number of accounts closed in the reporting year by the total number of accounts open at the end of that same year. (See the figure below.) In fact, account closings have been falling every year since 2018. Minnesota, California and Massachusetts were the states with the lowest percentages of account closings.

Account Balances and Services Used

The average monthly balance for Bank On-certified accounts in 2024 was $1,273, representing a 3.4% increase in inflation-adjusted dollars from 2023. States/territories with the highest average monthly account balances were New Hampshire, Massachusetts and California. The states with the lowest average monthly account balances were Ohio, Vermont and Maine.

Account holders use various services through their Bank On accounts, including direct deposit, bill pay and peer-to-peer (P2P) transactions. While usage patterns for most services have remained stable, P2P transactions stand out as an exception.

• Since the BOND Hub launched in 2018, the percentage of account holders using P2P transactions has grown steadily each year.
• By 2024, half of all account holders were using this service, up from 37% just three years earlier. (See the figure below.)
• Transaction volume has also surged: Monthly P2P transactions nearly doubled from 31.8 million in 2023 to 61.4 million in 2024.

A recent paper notes that Zelle, the bank-backed P2P platform, has expanded its user base to align with existing banking apps and a focus on security.

Conclusion

As electronic payments become mandatory and banking history grows increasingly important for credit access, Bank On accounts are bridging critical gaps in checking account ownership and utilization within the financial system. By accessing data through the BOND Hub, financial institutions and other stakeholders can gain insights into how millions of Americans who historically have been outside the banking system are now finding affordable banking services. Check out the latest BOND Hub report for additional insights into Bank On account trends.

Notes

1. A household was considered “unbanked” if no one in it had a checking or savings account at a bank or credit union.
2. This involves examining bank transactions (inflows/outflows) to determine the creditworthiness of individuals, including those with thin or no credit files.
3. Account closing rates are calculated by dividing the number of accounts closed in the reporting year by the total number of accounts open at the end of that same year.