Saving money is a smart way to build a nest egg, squirrel away cash for retirement, or 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 tips and methods to help you save your cash without having an official bank account.
Use a High-Quality Home Safe
A durable safe is an excellent option if you prefer to save money the old-fashioned way and hide your cash. Ensure that your safe is fireproof and 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 more than about $200 in cash. While this method is easy, it also comes with many 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 hidden location, just in case.
While a safe is undoubtedly an excellent 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 to hang onto your money until you’re ready to spend it or move it to another account, such as a prepaid card.
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 credit cards in that you can use them to purchase at almost every retailer and online.
Prepaid cards are somewhere between a gift card and a debit card. 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.
Remember that if your prepaid card is lost or stolen, you’ll need to report it immediately. 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 pretty hefty fees. Ensure you always read the fine print to ensure you’re getting the best option out there.
When saving money with no bank account, a prepaid card is an excellent way to monitor your budget and spending. It’s also a perfect way to set aside a specific amount of money if you want to make a significant 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 there.
Some local convenience and grocery stores also offer their 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 these banks will cash checks for you, but many will if the check comes 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 difficulty holding onto cash, giving it to an entrusted friend or family member might be best. They can save your money for you and keep it safe until you can spend it or transfer it elsewhere.
Ensure 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 keeping it on their own. Talk to someone in your family who has a home safe or is responsible with money, and ask if they’d be willing to hold onto your money.
Start Saving Today
No matter why you want to save money, there are ways you can do it without having a bank account. Whether with a home-safe, prepaid card 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 ensure your money is being held in a safe and reliable place.
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