Here’s how to save money if you don’t have a bank account 💰
Putting a little bit of money aside is a good way to protect your future, but how do you do it if you don’t have a bank account?
It’s estimated that around 1.5 million people in the UK don’t have a bank account. There can be several reasons for this – they can be denied access to certain banking products or prefer not to trust their money with a bank for whatever reason.
So, if you need to save money and don’t have a bank account, there are several options that could work for you:
Post Office Account
The Post Office provides several savings options if you don’t have a bank account. You can save money using one of their accounts, such as instant saver or ISA, and invest in a Post Office bond.
A bond is a fixed interest rating savings account. The fixed interest period is set on the opening account, and you cannot access your savings until that period has elapsed. It’s a good option for people who want to know exactly what kind of return they will get on their savings and don’t mind not being able to access them for a long period of time.
Keep Your Savings at Home
When you think of saving cash at home, we immediately conjure up visions of shoving it under a mattress or sticking it in a shoebox at the bottom of the wardrobe. Or, you may even like to keep a large jar or bottle of loose change to chip into every so often.
Although these methods aren’t advisable, given the obvious security risks, there are ways you can safely save money at home.
If you prefer to deal in the case, and as such, like to save large amounts of it up, you may want to think about investing in a solid, strong home safe. Of course, this won’t mean 100% protection for your money, but it will be a suitable deterrent for opportunist thieves who are looking for a quick gain.
Save Money Using a Prepaid Card
Aprepaid debit cardis 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 asdirect debitsorstanding orders. This means you can have your wages or benefits paid directly onto the card. Although many people may use the card for their day-to-day finances, receiving regular payments onto a prepaid debit card also means you can use it to put money aside.
You may decide to take out two prepaid debit cards – one for everyday use and another for saving. If you choose to save money using a prepaid debit card, you need to know what protection you have.
In the UK, prepaid debit cards don’t fall under the protection afforded by Financial Services Compensation Scheme (FSCS). Under the FSCS, savings in bank accounts up to £85,000 if the bank goes bust. However, your money is still protected by the Financial Conduct Authority (FCA) and ringfenced by the prepaid card provider.
Alternative Accounts with Suits Me®
Here at Suits Me®, we offer much more than just a basicprepaid debit card. Our accounts are personal e-money accounts that work similarly to a traditional bank account. You’ll gain access to anonline accountand ourmobile app, where you’ll be able to manage your money on the go, 24/7.
We offer a whole variety of banking-like features including:
The ability to set upstanding ordersand managedirect debits,
Send money within the UK via atransfer, international transfers are available via a partner in the Suits Me® app,
Gain access to our exclusivecashback reward programmewhere you’ll automatically get a percentage of your money back when you use your Suits Me®debit cardwith our retail partners.
Opening a Suits Me® account takes 3 minutes and you’ll gain access to your online account immediately so you can start managing your money. We don’t ask for proof of address or run a credit check. We accept 99.8% of all applicants – so if you’re looking for a suitable alternative solution apply today!
Open Your Account Today
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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.
Options for maintaining a physical safe or vault include home safes and safety deposit boxes. Look for fire-safe and water-safe options for a home safe. You can also choose a bank safety deposit box as an alternative to a savings account to store cash or other valuables like gold, jewelry or antiques.
“I would argue that it is too expensive to be unbanked.” 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.
Living Without a Bank Account. Life without a basic bank account may seem difficult, if not impossible. However, it can be done. When we think of our bank accounts, it's clear to see that they're responsible for so much more than simply storing our money.
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.
Cash a check at a retailer that cashes checks (discount department store, grocery stores, etc.) Cash the check at a check-cashing store. Deposit at an ATM onto a pre-paid card account or checkless debit card account.
Yes, people without bank accounts can easily start using a Paytm wallet. Users can add money to their Paytm Wallet using various Payment options such as Credit Cards, Debit Cards, Net Banking, UPI, etc. Similarly users can also receive money into their Paytm Wallet from their friends and families.
Key points. If a current account or savings account is left inactive for a specified period of time it will be declared dormant by the bank, meaning it's inactive or no longer in use. But if there's any money left in it, you may still be able to track down the account and reclaim any funds.
Key Findings. An estimated 4.5 percent of U.S. households (approximately 5.9 million) were “unbanked” in 2021, meaning that no one in the household had a checking or savings account at a bank or credit union. The unbanked rate in 2021—4.5 percent—was the lowest since the survey began in 2009.
Some reasons a person might not have a bank account include: Lack of access via a nearby bank branch or mobile phone. Minimum balance fees. Distrust of the banking system, typically due to lack of transparency regarding fees and deposit timing.
You'll generally need a checking account to efficiently complete everyday transactions such as paying bills or making purchases. Going through life without a checking account may be possible, but it can be time-consuming, costly and tedious.
For example, you may have to go in person and wait in line so you can pay certain utility bills. It can also be harder to access credit if you need to borrow money, and put a drag on everyday money management. Plus, it's often more expensive.
Money orders can almost always be used in place of a personal check, and because of this, they're great for people without bank accounts. The funds on a money order are guaranteed. They never expire, and you can even put a stop payment on them if you need to.
It's a good idea to keep enough cash at home to cover two months' worth of basic necessities, some experts recommend. A locked, waterproof and fireproof safe can help protect your cash and other valuables from fire, flood or theft.
Money market accounts and certificates of deposit (CDs) may provide higher yields. Peer-to-peer lending is another alternative to savings accounts. Credit union bank accounts may provide higher rates than bank accounts, but you must be a member to open one.
The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.
A money market account can be a safe place to park extra cash and earn a higher yield than from a traditional savings account. Money market accounts are like savings accounts, but they often pay more interest and may offer a limited number of checks and debit card transactions per month.
Keep any paper cash, currency, and valuable paper records locked in a quality, humidity-controlled, fire-resistant safe. If you have valuables such as paper cash or other important/sensitive documents, you absolutely need to invest in a quality safe with UL-rated security and certified fire protection.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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