Saving money is a smart way to build a nest egg, squirrel away cash for retirement, or to get money for a down payment on a home.
If you don’t have a bank account, how can you save money in a way that will keep your cash safe?
Read on for some tips and methods that can help you save your cash without having an official bank account.
Use a High-Quality Home Safe
If you prefer to save money the old-fashioned way and hide your cash, a durable safe is a great option. Make sure that your safe is fireproof and that it includes a combination lock. Never give the combination to anyone you don’t know and trust.
For those who decide to save their money in a home safe, it’s important to note that most insurance companies don’t typically reimburse for much more than about $200 in cash. While this method is easy, it also comes with a lot of risks.
If you’re still convinced that a home safe is the best method for you to start saving money, make sure that it’s heavy enough so potential criminals can’t take it. You should also secure it in a location that’s hidden from view just in case.
While a safe is certainly a good option to save a bit of money, it’s not recommended for large sums of cash. Using a safe should only be a temporary way for you to hang onto your money until you’re ready to either spend it or move it to another account, such as prepaid cards.
Save Money with Prepaid Cards
A prepaid card is an easy way to help you start saving money without having to bring a lot of cash with you. These cards are similar to a credit card in that you can use them to make purchases at almost every retailer, and online.
Prepaid cards are somewhere between a gift card and a debit card. Simply load your money onto the card and use it to buy things anywhere you go. Look for prepaid cards from Visa and Mastercard so that your card is accepted virtually everywhere.
Keep in mind that if your prepaid card is lost or stolen, you’ll need to report it right away. The card issuer can cancel the card, but since your cash isn’t connected to a bank account, your money will likely be lost forever.
A prepaid card might also include some fairly hefty fees. Make sure that you always read the fine print to make sure you’re getting the best option out there.
When you’re saving money with no bank account, a prepaid card is a good way to keep an eye on your budget and your spending. It’s also a good way to set a specific amount of money aside if you want to make a major purchase later without using credit, such as a home appliance or computer.
Find a Check Cashing Location
Although paper checks are becoming obsolete, there’s no doubt that you will end up with one every once in a while. If you don’t have direct deposit through your employer, you’ll need to be able to cash your paycheck somewhere.
If you don’t have a bank account, there are still places you can go to get your check cashed. First, try the issuing bank if you have a local branch near you since most will happily cash the check for you there.
Some local convenience and grocery stores also offer their own check cashing services. Look for companies like 7 Eleven or Publix grocery stores, which offer some options for check cashing.
You can also try some of the bigger banks in your area such as Wells Fargo or Bank of America. Not all of these banks will cash checks for you, but many will as long as the check is coming from another reliable issuing bank. Once your check is cashed, you’ll still need to put the money somewhere safe for savings.
A Trusted Friend or Family Member
If you have a difficult time holding onto cash, it might be best to give it to an entrusted friend or family member. They can hang onto your cash for you and keep it safe until you’re ready to spend it or transfer it elsewhere.
Make sure that the person you give your cash to is someone you trust explicitly. You don’t want to give your money to someone who might suddenly disappear one day, or who could end up spending it without your consent.
While giving your hard-earned cash to another person isn’t the best way to save money, it can be helpful for those who have a tough time saving it on their own. Talk to someone in your family who has a home safe or who is responsible with money, and ask if they’d be willing to hold onto your money for you.
Start Saving Today
No matter why you want to save money, there are ways you can do it without having a bank account. Whether it’s with a home safe, prepaid cards, or someone you know, the key is to keep your money safe and accessible until you are ready to spend it.
Never give your safe combination to someone, and always make sure that your money is being held in a safe and reliable place.
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