One in five consumers with bank accounts also use high-interest, alternative financial products, according to a recent survey from TD Bank.
The $220 billion-asset bank said in a report Thursday that 22% of consumers with checking accounts have used check cashing, money transfer or payday lending services in the past three months.
Twelve percent had used check cashing services, 11% had used money transfer agents, 5% had gone to a pawn broker, 5% had used rent-to-own services, and 4% had taken out a payday loan, according to the survey.
The reasons behind the findings were unclear. Sixteen percent of respondents reported not having a particular reason for using alternative products, many of which are typically marketed toward unbanked customers. No other breakdowns were given.
TD Bank surveyed 1,500 customers at various financial institutions nationwide, the bank said in a news release.
The findings were reported in the bank's annual Checking Experience Index. Last year's survey did not include data on alternative financial services.