# Unbanked & Underbanked

*Everyday Money — Finicade finance glossary*

Unbanked households have no bank account at all; underbanked households have one but still rely on check cashers, money orders or payday lenders. Roughly one in twenty US households is unbanked and closer to one in six underbanked, with far higher rates globally. The financial cost of exclusion is severe and regressive: check-cashing fees, money-order fees and payday interest can consume several percent of income for services that cost account holders nothing.

**Also known as:** unbanked, underbanked, financial exclusion

**Related terms:** [Checking Account](https://finicade.com/glossary/checking-account), [Money Order](https://finicade.com/glossary/money-order), [Payday Loan](https://finicade.com/glossary/payday-loan), [Financial Literacy](https://finicade.com/glossary/financial-literacy)

Source: https://finicade.com/glossary/unbanked-and-underbanked