Who Has a Bank Account? Exploring Changes Over Time, 1989?2001

Abstract

The decade of the 1990s was a time of substantial economic and public policy changes. We explore factors affecting bank account ownership, with a special emphasis on the effects that changes over time may have had in bringing low-to-moderate income families into the financial mainstream. Data are from the 1989, 1992, 1995, 1998, and 2001 Surveys of Consumer Finances. Results indicate that holding socioeconomic characteristics as well as households’ need for an account, abilities to manage the account, access to accounts, and previous experiences constant, account ownership increased over time, with the biggest gains between 1995 and 1998. Increases over time were experienced across the spectrum of income, net worth, education, race, and age characteristics.