What can I use instead of a checking account?

If you’re looking for a checking account alternative, consider these tools to help you manage your money:

• Cash. If you use cash frequently, you’ll want to be mindful of budgeting, spending, and saving.
• Check-Cashing Services.
• Reloadable Prepaid Cards.
• Money orders.
• Money Transfer Technology.

Why is it bad to not have a checking account?

If you don’t have a bank account, McClary says you’re most likely to pay high fees for a prepaid card or a check cashing service. “Not only will you pay more, but your money will not be as safe due to a lack of FDIC protection,” he says.

What can I do if I don’t have a bank account?

Consider Alternatives

1. Alternative checking accounts.
2. Prepaid cards.
3. Secured credit cards.
4. “Second chance” checking accounts.
5. Repair any negative information on your ChexSystems report then apply for a regular checking account.

Is it illegal to not have a bank account?

Nevertheless, bank accounts aren’t mandatory, and they’re not the only smart place to put your money. Read on to learn about the ways to live without a bank account.

What is required when opening a checking account?

Some requirements for opening a bank account may include: At least two forms of government-issued photo identification, such as a valid driver’s license or passport. Social security number or individual taxpayer identification number. Utility bill with current address information.

Where can I keep my money besides a bank?

Let’s review 10 places to stash cash besides a traditional bank savings account.

• Online High Yield Savings Account.
• Certificate of Deposit.
• Series I Savings Bond.
• Gold.
• Exchange Traded Fund for Precious Metals.
• Lego Sets.
• Discount Gift Cards at Costco.
• Christmas Club.

Why would someone not want a bank account?

The main reason people don’t belong to a bank is that they think they don’t have enough money to maintain an account or meet a minimum balance requirement, according to an FDIC study. The account also provides access to mobile check deposit services, online bill pay and a safe place to store your money.

What are disadvantages of not belonging to a bank?

Some disadvantages of being locked out or not choosing to belong to the traditional banking system are having to go everywhere to pay bills. They have to take time to go there and waste gas to go there. There is a fee for every purchase you make.