Everyone has a unique financial situation — one that may require additional banking solutions to meet specific needs. Fortunately, many banks offer more money management options than just checking and savings accounts.
Not everyone needs a traditional checking account. In fact, many qualified banking customers choose not to have checking accounts, according to Jody Wigley, Head of Now Banking at Regions Bank. “It’s not because they’re locked out by the financial institution or don’t understand how a checking account works,” he says. “They just want other options.”
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. “Cash is not insured, so if you lose it, it’s gone,” Wigley says. “And since there’s no electronic record, you have to be more disciplined about keeping track of it yourself.”
If you need to pay bills with cash, you can visit the biller’s payment center, such as your local power company’s payment center for your electricity bill. You can also visit a participating Western Union® agent location to send cash to thousands of business to pay your bill for things like credit card, car, utilities, and mortgage for a small fee.
Check-Cashing Services
If you have a check to cash but don’t have a checking account, you may need to rely on check cashing services, where you could incur a fee of 1 to 6 percent, or possibly more. If you don’t have a checking account, then the next question is what to do with your cash.
Reloadable Prepaid Cards
Consider a reloadable prepaid card if you don’t have a checking account. Prepaid cards can be useful for managing your money if you have a variable income, and many do not charge overdraft fees. They also may offer fraud protection and transaction monitoring to protect your money from suspicious activity.
A reloadable prepaid card can also help with budgeting, Wigley says. “You might put a certain amount for grocery shopping and other expenses onto separate prepaid cards to help control your spending,” he explains. Many reloadable prepaid cards also come with access to online banking to manage your money wherever you are with tools to help with budgeting, cash flow, and savings.
Money Orders
If prepaid cards aren’t for you, a money order may be a good option. You can use a money order to make payments, pay bills, or send money to friends or family. Money orders can be purchased several places like a bank, a post office, or some retail stores. Most of them accept cash, prepaid cards, and debit cards, and some accept credit cards. While money orders come with a small fee, they allow you to track the payment to ensure it gets delivered to the correct recipient.
Learn more about how to manage your money with or without a bank account through Regions Now Banking.
FAQs
Prepaid cards
A prepaid card (sometimes called a prepaid credit card or a prepaid debit card) allows you to store and spend money without a bank account. You can load money directly onto the card and spend up to that total amount. Money can be loaded at places like ATMs, participating stores, or online.
How to manage money without a bank account? ›
Key Steps for Storing Your Money Without a Bank
- Step 1: Explore Secure Online Payment Platforms. Secure online payment platforms are alternatives to traditional banking. ...
- Step 2: Use Digital Wallets. ...
- Step 3: Consider Peer-to-Peer Lending. ...
- Step 4: Invest in Alternative Assets. ...
- Step 5: Maintain a Physical Safe or Vault.
Prepaid cards
A prepaid card (sometimes called a prepaid credit card or a prepaid debit card) allows you to store and spend money without a bank account. You can load money directly onto the card and spend up to that total amount. Money can be loaded at places like ATMs, participating stores, or online.
Which type of account is better for having easy access to your money? ›
Your hard-earned money deserves a good home. With a savings account, you can maintain your savings in a liquid state—meaning you can access your funds whenever you want—while also putting some space between your savings and your daily spending needs.
How can I keep money safe without a bank account? ›
How to Store Money Without a Bank
- Home Safes. One of the most direct ways to store money outside of a bank is by using a home safe. ...
- Digital Wallets and Online Platforms. Platforms like PayPal or other online financial services can be a good place to store funds. ...
- Prepaid Cards. ...
- Cryptocurrencies.
- Higher-Yield Money Market Accounts. One simple alternative to depositing money in a traditional bank savings account is a money market account. ...
- Certificates of Deposit (CDs) ...
- Credit Unions and Online Banks. ...
- High-Yield Checking Accounts. ...
- Peer-to-Peer (P2P) Lending Services.
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.
The 10 smartest place to keep your money are:
- High-yield checking accounts.
- Money market accounts.
- Treasury bills.
- Treasury notes.
- Treasury bonds.
- Municipal bonds.
- Corporate bonds.
- Gold.
PayPal, Venmo, Western Union, and Cash App are some of the most popular payment services that do not require you to own a bank account to receive money. If you use a payment app like PayPal, Venmo, or Cash App, your recipient may sign up for the app and link a prepaid debit card.
Where to put large amounts of cash? ›
If you've got a large pile of dollar bills and you want to put it somewhere safe, a cash deposit at a bank or credit union could be your best move.
Alternative banking companies are financial technology (fintech) businesses that provide a wider, more flexible range of services than those offered by traditional banks. They may offer multi-currency accounts, better exchange rates, lower interest rates on loans and lower account fees.
What is better than a bank account? ›
Money-market accounts tend to have higher APYs than high-yield checking accounts, and lately have been on par with high-yield savings accounts or CDs. “The advantage of a money-market account is you have access to those funds immediately and there's not a penalty.
Why is a CD better than a savings account? ›
Higher interest rates: Certificate of deposit accounts may offer higher interest rates compared to savings accounts, especially for longer terms. However, compare the rate before making a decision.
What can you not do without a bank account? ›
6 Things You Can't do Without a Bank Account
- Set up Direct Debits and Standing Orders. ...
- Shopping Online or Over the Phone. ...
- Withdraw Cash From ATMs. ...
- Impact Your Credit Rating. ...
- Potential Security With Using Cash. ...
- Writing a Cheque.
A prepaid debit card is another useful way to save money if you don't have a bank account. It allows you to load money onto a debit card, which you can then use for purchases or withdraw cash from an ATM. However, prepaid cards can also be used to set up regular payments such as direct debits or standing orders.
What is the best way to physically store money? ›
At a minimum, your money should be kept somewhere you can lock, such as a locked drawer, secure filing cabinet, or lockbox. Safes can offer the best protection and house other valuables, such as jewellery. The higher a safe's cash rating, the better quality of protection.
How can I spend money without a bank account? ›
Credit Card
Credit cards allow you to make purchases electronically, withdraw cash from ATMs, pay online and make online transfers using “credit” i.e. borrowing money from the bank. You pay back the money that you spend within a specific time period.
How do I get money if I dont have a bank account? ›
5 ways to cash a check without a bank account
- Cash your check at the issuing bank.
- Cash your check at a retailer.
- Load funds onto a prepaid debit card.
- Sign your check over to someone you trust.
- Cash your check at a check-cashing outlet.
Cash It At The Issuing Bank
If it's convenient, head to the issuing bank in person. The bank will confirm the funds in the payer's account and ask you to prove your identity. Usually, any government-issued ID, such as a driver's license or state identification card, will be sufficient.
