I don’t know about you, but that’s hard to imagine. In a digital world of mostly digital currency, one has to wonder how not having a bank account is possible.
2 words: Check Cashing.
Yes, those storefronts known to be in bad neighborhoods next to liquor stores… And in today’s world, they are still relevant.
See Article: How to live without a bank account
But the question is not only how they do it…but WHY do they choose to live without banks accounts in a fast-paced digital world? After all, maybe they can help the rest of us.
At Banksloveme.com we offer the fast, easy alternative to Big Banks where you get robbed with insufficient fund fees, monthly minimum balance fees and the like. We list banks that are local or regional that offer accounts that don’t charge these fees. You’d think the 10 million households would open accounts if they knew these alternative options were available.
So, why don’t they have a bank account? A few reasons:
Reason #1: It may be possible that they cannot afford the ‘float’.
Let’s say someone buys a car from you for $10,000 and writes you a personal check for it. Your loan shark is coming over to collect the money you owe him, in the amount of $5000- plus the juice. Let’s call it $8,000. If he doesn’t get his money, he will be very displeased and probably wind up breaking your knee caps with a baseball bat. Now, it would seem that you’re all set. You owe the money. You have the money. You’ve got $10K, you owe $8,000 and will have $2000 to blow on weed and prostitutes later on in the week (let’s pretend here, Sopranos-style).
But all of a sudden, you go to cash the $10,000 check and the bank tells you that they will have to place a 10-day hold on it because it is an out-of-state check. Their banking policy requires 10 days to pass before they can give you availability to the funds.
Oh no. you’re screwed. Guido is going to be here in two hours wanting his money and he does NOT like to reschedule appointments. What do you do?
You run down to the check cashing place, right next to the liquor store. You give them the $10K check, endorsing it over to them and providing them whatever documentation they need to feel comfortable that if your check goes south, they’ll be able to retrieve the funds they just gave you. They hand you over $9,500, taking $500 for the time and trouble.
Guido shows up. You pay him the $8K and he doesn’t break your legs. All is good with the world and it’s Miller Time.
This just isn’t for members of the Sopranos. Everyday people have a difficult time keeping their account balances afloat. Chalk it up to financial troubles or a lack of discipline in balancing their checkbooks- they can’t have money just sitting in an account.
Reason #2: they aren’t business owners.
When you’re an employee, you can just take your check down to the check cashing place and have your payday. But as a business owner, you’re a stakeholder in the economy. You’re in business and you need a way to conduct commerce. Bank Accounts allow you to move money in a way you cannot do otherwise.
Let’s say you get a check. You need a third party to liquidate that check into either cash or savings. The check means the person writing it has a bank account. Their bank is promising the money to you. You need a way , an interface, to either deposit or liquidate that monetary promise. Banks provide the ability for you to do that.
Or let’s say you have an online business—which means your payments come through electronic gateways like Paypal. That means there are no checks to cash out at the check cashing place. That also means you’ll be needing a bank account to link your merchant account to for money transfer.
FYI: The thing to remember is that banks are not evil. It is the corporate Wall Street Banks and the centralized banks that have corrupted banking as we know it today. Think of it similar to big, industrialized food chains compared to local farmers and eateries. Maximized profits become the only objective, leaving the modus operandi under the category of “any means necessary”. There is also a disconnect with big business that removes the stakeholders from the community they live in. In other words, the people making the decisions aren’t feeling the effects of these decisions where they live and sleep and frankly, they don’t give a damn.
If you’ve been thinking about getting a bank account, you can find a reputable local bank here.