The high cost for fraud and fees for the 'unbanked'

ATLANTA - The FDIC reports that about 6 million Americans are "unbanked." That means they have no savings or checking accounts. This kind of money management can be unsafe and expensive.

Households categorized as unbanked still get paid. They still have to cash checks, and to pay bills. But, generally, those millions of people use substitute services that cost them a lot of money in fees.

About 4.5 percent of American households pay bills with Venmo, CashApp, and pre-paid cards. Many of us use those same services to pay babysitters or to split meal costs, but putting all of your money in these resources doesn’t provide the financial protection like you get with an FDIC backed account.

If someone steals your pre-paid card, who do you turn to? If your mobile payment service is hacked, again, how do you recover that money? And, it's important to note that you can’t establish the credit history you need to be a part of the modern-day financial world.

Here’s a safer option if unbanked is what you prefer: the old-fashioned US Post Office. The Post Office has money orders. They have purchase receipts. You can track them in case they're lost or stolen. You can buy them for as much as $1,000 a piece, and you get as many as you need. There are fees up to $2.40 for a single money order for a domestic exchange. They're closer to $50 if it’s international. If you got a government check like your tax refund, the Post Office will cash that for you. Establish a relationship with your local Post Office employees so that they know you for a smoother process.

The US Post Office used to be in the banking business up until about 1967. Last year, it ran a pilot check-cashing program. It’s been stalled. But many in Congress hope to see it back up and running. We will keep an eye on that for you.