Posted on 27 December 2010
Tags: bank account, card number, carry the cash, cash, cash a check, check, debit card, funds fee, Interest Rates, Loans, money order, overdraws, prepaid debit card, profits of banks, savings account, theft, wire transfer
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.
Problems
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.
Distrust
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.
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Posted on 16 October 2009
Tags: ATM cards, bank account, bank draft, cashier’s check, Credit Cards, money order
If you are willing to make a large purchase, and you do not carry credit cards or cash with you, then a private or public seller may ask you to pay by bank draft. This term is more commonly used in the UK as compared to the US, where it is roughly equivalent to the word cashier’s check. Essentially, a genuine bank draft or cashier’s check is guaranteed up to a certain amount of money.
Guarantee of Payments to seller
When you withdraw funds from your account in order to get a cashier’s check, then you are essentially purchasing the bank draft. Once that you’ve purchased the cashier’s check, or money order, then the money in your account is gone and you can not spent it on other things. This can provide an extra security to the person selling you something, because it can guarantee that your check will not bounce.
ATM or credit card instead of bank draft
As so many people are now banking with ATM cards so the face of the bank draft, cashier’s check or money order is changing. Further, there exist a software that can automatically deduct funds from your bank account.
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