Ownership of a bank account and health of older Hispanics

- Hispanics are more likely than non-Hispanic Whites to be unbanked.
- Using the HRS, we study the association between health and bank account ownership.
- Among Hispanics, bank account ownership is associated with improved mental health.
- Hispanics in low SES neighborhoods and below median wealth experience larger benefits.

We study health effects of financial inclusion, particularly ownership of a bank account of older minorities, with focus on Hispanics. Using data from the Health and Retirement Study from 2000 to 2012, we find that, for Hispanics, being banked has a positive effect on mental health but is not associated with effects on physical health. Mental health benefits are likely to be larger for those who face greater hurdles to access formal financial institutions. Hispanics in less well-off neighborhoods and with below-median wealth appear to experience the greatest mental-health benefits associated with ownership of a bank account.