You don’t want to have a savings bank account for many reasons. You may have a checking account but don’t want to have a savings account. Or maybe you can’t get an account for some reason.
However, leaving savings in your account is pointless as you’ll spend it! The good news is that there are different ways to save money without a bank account to reach your savings goals successfully.
Use a Prepaid Card
One of the easiest ways to save money without a bank account is to use a prepaid card. This is a lot like a debit card, but you load money onto it and then spend it as usual (or not, if this is a savings pot).
Once you run out of money on the card, it will stop working until you add more funds. You can transfer money onto these cards from your checking account, and most of them work a lot like online banks, so you can access them via an app.
Many retail stores will sell these cards; you don’t need any ID or paperwork to buy one. Banks and other financial institutions will offer them as well.
Set Up a Credit Union Account
Credit union accounts are like a local bank but run by a group with something in common. This is often something like a trade union, an employer, or even living in the same area or attending the same place of worship.
Credit unions offer different types of accounts, which you can use to reach financial goals with your savings. They are also a good option if you have had problems opening a new account with bricks and mortar banks to get traditional savings accounts. They are also sometimes known as money market accounts.
Use Certificates of Deposit
A certificate of deposit is a good option if you are saving for something with an exact date involved and know that the savings aren’t an emergency fund that you’ll need at any point.
With these, you put money into them for a set period of time, and you can’t access them. The term is usually three to five years, depending on the product.
You usually get higher interest rates with a certificate of deposit than with regular savings accounts so you can increase the account’s balance more with them than with other options.
The main thing to remember is that you need to be organized with your personal finance and not need to access it for any reason, or you’ll be charged a fee.
Try Digital Payment Apps like PayPal
Most of us will have run into digital payment apps such as PayPal or Venmo as ways to pay for things such as online shopping or even send money to a service provider like a plumber.
They can also work like a basic bank account because you don’t need to withdraw or spend money; you can leave it there.
It is easy to see how much money is in there, and if you are making payments or even paying direct debits through it, you can add funds, so there’s enough money for them without touching the savings.
Use Alerts in your Checking Account
Alerts can work if you are open to having a bank account but want a better way to control your account balance and ensure you save money. Online banking has brought us a range of new features to accounts, and one is an easy way to ensure you aren’t dipping into your savings.
While checking accounts have a lower interest rate than traditional savings accounts, you get more control, and alerts can help.
Say you have $500 in savings in your account. Set an alert if your bank balance goes below $550 so that you know you must direct deposit more money to avoid touching your savings.
Install a Home Safe
One of the simplest ways to save money is to put it somewhere physically. But you don’t want to avoid a load of cash lying around the house. The answer is to have a home safe installed. You can get some inexpensive home safes, but there are a few things to watch for when buying one to ensure it is up to the job. These include:
- Steel construction weighing more than 50 pounds, so it can’t be easily moved
- Mounting hardware to bolt it to the floor or wall
- Waterproof and fireproof to protect the contents
- Key and keypad settings to gain access
Even a lighter safe can work if you have an excellent place to hide it so that it can be challenging to find in the event of a break-in.
Give the Money to a Trusted Friend or Family Member
This option can work if you have someone you trust completely. Parents or siblings are popular for this option but even trusted friends who are better organized with money could work well.
You should have a system to document how much money you have given them at a set point, and they tell you where it will be kept.
They may use a savings account or a similar facility with a financial institution they use. Or they may have a safe at their home.
The problem with this option is that it can be tricky to access the money, and you can be a pain for a friend or family member.
But that works both ways, as not wanting to be a pain may help you leave the money in the savings account for longer.
Final Thoughts on Saving Money Without a Bank Account
If you want to save money, there are a few options, but avoid a traditional bank account. You can go old-school and keep your money safe in the house but make sure no one knows it is there!
Or you can try something different from a traditional bank account with things like building society accounts or credit unions. Whatever route you take, good luck with your savings.