There are many advantages of having a bank account. At the same time, there are benefits of living without a bank account too. Living on cash, with no bank account, might not be so problematic, after all.
Firstly, if one is not careful there can be accidental overdraws from the bank account. The bank could also slap someone with insufficient funds fee, for a bounced check. They could also charge someone with an overdraft protection fee, for paying the check with its funds.
The bank could also transfer the necessary funds over from a savings account and charge a fee. The profits of banks have been rising, over the past few years. These are all problems in having a bank account.
Another problem could be theft. If a debit card or card number is stolen, it can be quite a headache. Fraudulent charges regarding a debit card are difficult to resolve. It would be better not to have one in the first place.
The problems discussed above, along with a general distrust of banks, have discouraged people. They would prefer to live without a bank account. For them life would be much easier without a bank account.
About 8.7% of families in the United States have chosen not to have a bank account, and keep their cash. They feel it’s much safer with them. Though it might seem unlikely, but living without a bank account is possible.
Alternatives to having a Bank Account
There are other alternatives which people have adopted. One way is to carry the cash around for things like groceries. There is the possibility of getting mugged. However, if one is careful, carrying around some cash won’t be too problematic.
It would not be a good idea to send cash through the mail. It is likely to get stolen or lost. A money order can, instead, be purchased. It can be purchased at a grocery store, post office, gas station or check cashing center.
While purchasing a money order, the face value and a small fee, needs to be paid. In return, a piece of paper that resembles a check shall be given. The recipient’s information and your information must be written down.
The money order should be mailed then. The receipt should be kept, just in case, the money order gets lost. Another way to send money or pay the bills could be through wire transfer. Western Union offers such a service.
One can also cash checks, without a bank account, at a check cashing center. A fee needs to be paid. It is usually a percentage of the check account.
The check can be cashed at the bank that’s listed on the front of the check. Certain banks charge fees to cash a check. This only applies if the sender of the check doesn’t have a bank account.
Borrowing money, when one doesn’t have a bank account, can be difficult. Certain lenders do offer loans to people without a bank account. However, they charge higher interest rates and fees to such people.
One can always buy a prepaid debit card. This requires no bank account. So there should be no problem.
The Better Choice
At the end of the day, the choice of whether to have a bank account or not, will depend on the individual himself. Many people prefer bank accounts and the security that it provides. While others feel that keeping the cash, at home, is a better choice.