Many people think not having a bank account would make things inconvenient. You couldn’t cash a paycheck, pay a bill, make large purchases, get a loan, rent a car, withdraw some cash when traveling or cash any checks your receive from people. However, it is still possible to have a life without a bank account.
The national government conducted a study and found that thirteen percent of all American households don’t have checking accounts. However, for people comfortable with banks, they should stick with them. Living without a bank account is merely an alternative for some.
Cash is one easy method besides banking. You can use cash without having to reveal your identity and some employers prefer to pay employees in cash in exchange for project rate. However, cash is difficult to send through the mail. If the cash is lost or stolen then you cannot retrieve it. With all the new laws, often having a few hundred dollars can be considered evidence of drug dealing. Therefore, keeping large quantities of cash on you may not be a good idea.
Another option is postal money orders. They are cheap at ninety cents a piece. These can be used to send to creditors or used to make purchases. You don’t need identification to purchase a postal money order, only to cash one. They are generally a safe way to send money through the mail. However, if you are being paid by postal money order then anybody who gets hold of it in transfer can cash it.
Today you can find check cashing and money wiring services on every corner. These are options if you need a paycheck cashed or a small loan. You can often get cash from them without having a bank account. They give you many options for receiving and sending money worldwide without a bank. The down side is the high percentage they charge for cashing the checks between one and six percent. Money-wiring services are even more expensive and should only be used in immediate emergencies. The federal government is also starting toe regulate and watch most of these places.
Direct-deposit debit cards are another option. These are relatively new; they are an ATM card without a checking account. There are several types available today. Employers can deposit your check to a card-only account. Other cards have pre-loaded funds like prepaid phone cards. The cards can be used to get cash from ATM’s. They are simpler and cheaper than a checking account. They are easy and safe to carry. However, there is a record kept of all your transactions.
These are only a few of the options available to those who don’t want or don’t have banking accounts. There are numerous other options available. By researching these options you can find something that works for you.