Living Without a Bank Account

Plenty of people choose to live without bank accounts.  They earn a living and buy things just like everybody else, but they work with cash.

Sometimes referred to as "unbanked" or "underbanked", these people are often low-income workers.  They may feel like they don't have enough money to use a bank or credit union, or they may simply dislike financial institutions.  Unfortunately, they often pay more for financial services than they would at a bank or credit union.

Serving the unbanked is not a new challenge.  Regulators and banks regularly try to figure out solutions, but there's no magic bullet.  USA Today describes why some people choose not to use bank accounts, and suggests that "no frills" accounts may solve the problem.  It seems like some of these people would be better off opening a bank account with a debit card and setting up direct deposit.  They'd get cash quickly, wouldn't have to visit a branch during banking hours, and would minimize (or avoid) fees at most institutions.

Have you decided to do without banks?  Tell us about it in the comments.

Further reading:

• How to Use Direct Deposit