# How In God's Name Can You NOT Have a Bank Account? **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [May 13, 2006, 3:04pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640 "2006-05-13T15:04:50Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![Rushgeekgirl](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rushgeekgirl/32/3715_2.png) [@Rushgeekgirl](https://boards.straightdope.com/u/Rushgeekgirl)\ **Post date:** [May 14, 2006, 1:46am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/41 "2006-05-14T01:46:30Z")
I have a checking account but I only use it for my internet service. My rent I pay cash and get a receipt. Lights and phone I pay at the grocery store, free with purchase. If I ever need a money order we have a gas station that gives free ones with gas purchases. I pay cash for my car note too. And that’s all my bills! 🙂 BTW, don’t know if this has been said but illegal immigrants (from Mexico for sure) can open checking accounts, at least at my bank, as long as they have ID from their country and a matricula. ---
**Author:** ![Leaper](https://avatars.discourse-cdn.com/v4/letter/l/4bbf92/32.png) [@Leaper](https://boards.straightdope.com/u/Leaper)\ **Post date:** [May 14, 2006, 2:01am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/42 "2006-05-14T02:01:24Z")
[QUOTE=Lissa] Neither-- cash would be worthless if there was any kind of breakdown in the US government. You would be better off if you had a case of Jack Daniels and a dozen cartons of cigarettes stashed under your mattress. (That’s what I’m stockipng up on in case of Apocolypse. Trade goods.) [/QUOTE] And as for the other example (drug offenses), wouldn’t the cops just FIND the money under the mattress when they searched the place, assume it’s part of the drug stash, and you’d lose it anyway? ---
**Author:** ![Frank](https://avatars.discourse-cdn.com/v4/letter/f/3d9bf3/32.png) [@Frank](https://boards.straightdope.com/u/Frank)\ **Post date:** [May 14, 2006, 2:16am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/43 "2006-05-14T02:16:14Z")
The assumption that people without bank accounts are going to check-cashing services is probably wrong. They are probably going to the bank the check is drawn on. Even with the recent trend of banks charging non-customers to cash a check on an account, it is still cheaper than a check-casher. That said, I am also bewildered as to why people with a good and consistent income would not have a bank account. ---
**Author:** ![Lissa](https://avatars.discourse-cdn.com/v4/letter/l/85f322/32.png) [@Lissa](https://boards.straightdope.com/u/Lissa)\ **Post date:** [May 14, 2006, 2:28am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/44 "2006-05-14T02:28:50Z")
[QUOTE=Frank] The assumption that people without bank accounts are going to check-cashing services is probably wrong. They are probably going to the bank the check is drawn on. Even with the recent trend of banks charging non-customers to cash a check on an account, it is still cheaper than a check-casher. [/QUOTE] I don’t think there is an issuing bank in this case. I don’t have one of my husband’s checks handy, but I’m pretty sure they’re issued by the state treasury. ---
**Author:** ![Mississippienne](https://avatars.discourse-cdn.com/v4/letter/m/d2c977/32.png) [@Mississippienne](https://boards.straightdope.com/u/Mississippienne)\ **Post date:** [May 14, 2006, 2:40am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/45 "2006-05-14T02:40:35Z")
[QUOTE=Frank] The assumption that people without bank accounts are going to check-cashing services is probably wrong. They are probably going to the bank the check is drawn on. Even with the recent trend of banks charging non-customers to cash a check on an account, it is still cheaper than a check-casher. That said, I am also bewildered as to why people with a good and consistent income would not have a bank account. [/QUOTE] This [study](http://www.knowledgeplex.org/news/150348.html) found that of the unbanked population in the Chicago area, about 75% use check-cashing outfits. ---
**Author:** ![Frank](https://avatars.discourse-cdn.com/v4/letter/f/3d9bf3/32.png) [@Frank](https://boards.straightdope.com/u/Frank)\ **Post date:** [May 14, 2006, 3:07am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/46 "2006-05-14T03:07:00Z")
[QUOTE=Lissa] I don’t think there is an issuing bank in this case. I don’t have one of my husband’s checks handy, but I’m pretty sure they’re issued by the state treasury. [/QUOTE] Which _should_ be willingly cashed by _any_ financial institution in your state. > [@Mississippienne](#): > > This study found that of the unbanked population in the Chicago area, about 75% use check-cashing outfits. Wow. I stand corrected. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [May 14, 2006, 3:19am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/47 "2006-05-14T03:19:06Z")
Around here, the minimums for a checking account are fairly low, though you will be charged a monthly fee. However, I don’t know of any bank that sets a minimum for a _savings_ account; you just don’t earn interest until you reach the minimum. Also, you usually can get a check drawn on your savings account (to pay bills) for free. If a fee is charged, it’s going to be less than getting a a money order. So lack of money is probably not really an issue. ---
**Author:** ![Annie](https://avatars.discourse-cdn.com/v4/letter/a/858c86/32.png) [@Annie](https://boards.straightdope.com/u/Annie)\ **Post date:** [May 14, 2006, 4:22am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/48 "2006-05-14T04:22:52Z")
If one owes child support or taxes, direct deposited paycheques could be subject to garnishment. Although if the prison has problems with employees with crappy credit ratings, I can imagine how un-thrilled they would be with staff falling from grace with the law on a personal matter. ---
**Author:** ![Lissa](https://avatars.discourse-cdn.com/v4/letter/l/85f322/32.png) [@Lissa](https://boards.straightdope.com/u/Lissa)\ **Post date:** [May 14, 2006, 4:39am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/49 "2006-05-14T04:39:52Z")
[QUOTE=Annie] If one owes child support or taxes, direct deposited paycheques could be subject to garnishment. Although if the prison has problems with employees with crappy credit ratings, I can imagine how un-thrilled they would be with staff falling from grace with the law on a personal matter. [/QUOTE] Child support comes out of a state employee’s check before they even get it. ---
**Author:** ![Renee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/renee/32/287_2.png) [@Renee](https://boards.straightdope.com/u/Renee)\ **Post date:** [May 14, 2006, 5:33am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/50 "2006-05-14T05:33:19Z")
[QUOTE=Lissa] Hubby told me that he had asked some delicate questions among the ones who don’t have bank accounts (\*\*nearly half of the employees!), \*\* trying to see how they managed to get along. Apparently, they buy money orders to pay bills which must be paid by check, and do all of their transactions by cash. They pay fees at banks and grocery stores and the like to get their checks cashed every week. [/QUOTE] This is stunning. My mind just keeps telling me that it cannot be true. You must live in some sort of parallel universe or something. I have never worked with anyone w/o a checking account, and when I worked in sales only encountered a small handfull of very poor people who couldn’t write a check. Someone who makes over $30,000/year? There is just no good reason. Especially if your rent is 200. It makes sense for any large company to insist on dirrect deposit...it saves tons of money and time...I read somewhere that it costs a company about .06 to make a direct deposit, and about $6 to send a check. > [@](#): > > **Lynn Bodoni** > it was better than having to plonk down several thousand dollars that we couldn’t touch, and that wouldn’t draw interest. Hu? Okay, it was a long time ago, but several thousand? There are several banks in the area I used to live in (Little Rock) that advertise totally free checking, no minimum deposit or balance, and checking with interest–all at the same time. My husband and I just moved to Okinawa, where I was shocked (shocked!) to discover that everything is done in cash here. Everything. You pay rent (which is usually $2000.00+) and utilities in cash, period. Horribly inconvienent. We finally did find a place that will draft the bills out of our checking account for us, much to our relief. ---
**Author:** ![grayhairedmomma](https://avatars.discourse-cdn.com/v4/letter/g/47e85d/32.png) [@grayhairedmomma](https://boards.straightdope.com/u/grayhairedmomma)\ **Post date:** [May 14, 2006, 7:46am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/51 "2006-05-14T07:46:44Z")
[QUOTE=MrJackboots] I know PG&E and SoConEd make allowances for this sort of behavior. They have payment centers in a lot of areas, usually open late, and you just bring in your bill and pay cash. [The California state government does something similar.](http://cpr.ca.gov/report/cprrpt/issrec/gg/cs/gg14.htm) [/QUOTE] “make allowances for this sort of behavior.” :rolleyes: There’s nothing wrong with paying for things with cash - even :gasp: utility bills. I have several accounts with different banks but still choose to pay bills sometimes with cash. Especially if I’m close to the due date or my budget is particularly tight and I can’t afford the chance that I’ve forgotten something and risk an overdraft charge. It is also very satisfying to take the cash or cashier’s check (my credit union does several a month for free) to the utility companies and paying the bill. There is no checking to make sure the check has cleared and wondering what has happened if it takes a longer time than usual, the bank screwing around with the order of check clearing, the company not getting/processing the payment quickly and hitting you with a late fee, but most importantly - it’s just done. And banks do make mistakes - recently I checked one of my accounts online and noticed that I had been incorrectly assessed a stop payment charge for a check on another persons account. Luckily because I HAD been paying for things with cash all week and NOT using my debit card or writing checks, I avoided what could have been a pretty bad situation, because definitely things would have bounced and it would have been more confusing to straighten out with the bank. Fortunately there was just a deposit, a withdrawal and the incorrect fee. ---
**Author:** ![Lynn\_Bodoni](https://avatars.discourse-cdn.com/v4/letter/l/e47c2d/32.png) [@Lynn\_Bodoni](https://boards.straightdope.com/u/Lynn_Bodoni)\ **Post date:** [May 14, 2006, 8:24am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/52 "2006-05-14T08:24:21Z")
[QUOTE=Renee] Hu? Okay, it was a long time ago, but several thousand? There are several banks in the area I used to live in (Little Rock) that advertise totally free checking, no minimum deposit or balance, and checking with interest–all at the same time. My husband and I just moved to Okinawa, where I was shocked (shocked!) to discover that everything is done in cash here. Everything. You pay rent (which is usually $2000.00+) and utilities in cash, period. Horribly inconvienent. We finally did find a place that will draft the bills out of our checking account for us, much to our relief. [/QUOTE] Yeah, several thousand. This was the Era of the Consolidating Banks, and apparently they didn’t like having to service people who didn’t have big bucks, so they made all sorts of conditions and charges. As I said, we went to a credit union to do our banking, and it’s the best move we could have made. ---
**Author:** ![DMark](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@DMark](https://boards.straightdope.com/u/DMark)\ **Post date:** [May 14, 2006, 9:07am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/53 "2006-05-14T09:07:38Z")
I used to teach adult classes at an inter-city school. First of all, I was shocked that hardly any of the students had a bank account and few of them even knew what an ATM was. I think it is a cultural thing, and I think it is a horrible blemish on America for what they have done to the poor. Unless your credit is spotless, many banks don’t want to deal with you, or you have to deposit a certain amount that is beyond the average person’s disposable income. There is the old joke, “how can I be broke, I still have checks?” Sadly, for many of my students who don’t have a grasp on basic math, that was their problem and suddenly they were hit with huge fees, or worse - fraud. We’re talking poor folk, who come from families who never dealt with banks before. Many of their local supermarkets and businesses didn’t even accept checks. So as far as they were concerned, why bother with a bank account? Slightly off topic, we once had a discussion about rent. At the time, I was living in upscale West Hollywood, CA. These students basically lived in ghettos. Guess who paid less rent. Me. Why? Maybe because I was a white male - but most likely because I had created a credit history, had a bank account and was able to provide references from employers and previous landlords. My students had nothing. So I paid less for my apartment, with all the amenities, and they paid more, in cash, to slum lords for rat traps. And as the years roll on, it gets harder and harder for them to break out of this cycle. ---
**Author:** ![MrJackboots](https://avatars.discourse-cdn.com/v4/letter/m/c0e974/32.png) [@MrJackboots](https://boards.straightdope.com/u/MrJackboots)\ **Post date:** [May 14, 2006, 9:25am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/54 "2006-05-14T09:25:11Z")
[QUOTE=grayhairedmomma] “make allowances for this sort of behavior.” :rolleyes: There’s nothing wrong with paying for things with cash - even :gasp: utility bills. [/QUOTE] Sorry. Bad choice of words, really (I blame the Finals BrainFry). I do a lot of the “Can’t spend what you don’t have” accounting myself; I use a check or credit card about once every three months. There’s nothing wrong with it, correct; it’s just considered a little eccentric. I think it’s just an unusual step to go the extra mile and have places where you can walk in and pay cash. ---
**Author:** ![DMark](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@DMark](https://boards.straightdope.com/u/DMark)\ **Post date:** [May 14, 2006, 9:50am UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/55 "2006-05-14T09:50:47Z")
[QUOTE=MrJackboots] Sorry. Bad choice of words, really (I blame the Finals BrainFry). I do a lot of the “Can’t spend what you don’t have” accounting myself; I use a check or credit card about once every three months. There’s nothing wrong with it, correct; it’s just considered a little eccentric. I think it’s just an unusual step to go the extra mile and have places where you can walk in and pay cash. [/QUOTE] You just reminded me…at my local Albertson’s (a chain supermarket in the Southwest) there is a customer service desk that takes cash and you can pay your phone, electric, gas, cable, water and other bills on the spot. Just bring your bill, slap down the cash, and they process it electronically. ---
**Author:** ![Fionn](https://avatars.discourse-cdn.com/v4/letter/f/a587f6/32.png) [@Fionn](https://boards.straightdope.com/u/Fionn)\ **Post date:** [May 14, 2006, 2:10pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/56 "2006-05-14T14:10:56Z")
The store where I work is a bill collection point for power and cable. The area is, to put it mildly, economically diverse. We process bills for people who pay hundreds of dollars in cash and people who beg to put the 50-cent service charge on their debit card or to write a check for it. ---
**Author:** ![delphica](https://avatars.discourse-cdn.com/v4/letter/d/e9a140/32.png) [@delphica](https://boards.straightdope.com/u/delphica)\ **Post date:** [May 14, 2006, 2:39pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/57 "2006-05-14T14:39:59Z")
[QUOTE=Renee] This is stunning. My mind just keeps telling me that it cannot be true. You must live in some sort of parallel universe or something. I have never worked with anyone w/o a checking account, and when I worked in sales only encountered a small handfull of very poor people who couldn’t write a check. Someone who makes over $30,000/year? There is just no good reason. Especially if your rent is 200. It makes sense for any large company to insist on dirrect deposit...it saves tons of money and time...I read somewhere that it costs a company about .06 to make a direct deposit, and about $6 to send a check. [/QUOTE] I agree that half seems unusual, but then I remember that I didn’t have a bank account for the first 6 years or so of my professional life. I had been A Fiscally Irresponsible College Student and gotten myself into a bad situation with my bank, making it difficult to get another bank account. When I started working (early 90s, to give you an idea of the time frame), I cashed my checks at the bank they were drawn on (no fee) or used a check cashing service if I had to (they had longer hours so sometimes it worked out that way). The most difficult thing to deal with would have been rent, but I had a roommate who was happy to write a check and I gave him cash for my half. If **Lissa’s** husband’s coworkers are in company housing, their rent might be automatically deducted from their pay, making the checks a non-issue. Anyway, my point is that it was easier than one might think to live without a bank account. In fact, I probably could have gotten a bank account after working for a year or so, but it was 6 years before I got around to it because it just wasn’t that pressing of an issue. And my job was white collar professional, making a $30K salary. I saved cash for, you know, savings, and also contributed to a retirement account. Then someone turned me on to the credit union, so that is where I do my banking. (Can’t recommend it enough, it’s excellent!) So now I have joined the world of having checks. Still don’t have an ATM card though (they offer one, but again, I’ve never gotten around to it). ---
**Author:** ![Kalhoun](https://avatars.discourse-cdn.com/v4/letter/k/3bc359/32.png) [@Kalhoun](https://boards.straightdope.com/u/Kalhoun)\ **Post date:** [May 14, 2006, 2:50pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/58 "2006-05-14T14:50:33Z")
[QUOTE=cuauhtemoc] I understand your astonishment completely, but I’m a little uncomfortable with the idea of _forcing_ people to participate in a system when they don’t want to. Personally, I can’t imagine keeping all my money in a drawer somewhere. But forcing people to become bank customers is just a big gift to the banking industry, and what have they done to deserve it? [/QUOTE] We’ve always had a bank account, but my husband was VERY resistant to being told he had to use automatic deposit rather than the comforting paper check system. They finally told him he would not get paid until he filled out the paperwork. He was the last guy to convert. He’s quite happy with it now. Just a bit resistant to change. ---
**Author:** ![Tenar](https://avatars.discourse-cdn.com/v4/letter/t/35a633/32.png) [@Tenar](https://boards.straightdope.com/u/Tenar)\ **Post date:** [May 14, 2006, 2:59pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/59 "2006-05-14T14:59:09Z")
[QUOTE=Lissa] They had set up a table inside the front door to assist people who wanted to set up their accounts before the deadline and to give out information to those who needed help. If the employees don’t chose a bank, they’ll automatically be assigned to XYZ Bank which has some fees and other pain-in-the-butt procedures that they can avoid by chosing a bank of their own. [/QUOTE] Okay, this part confuses me. It seems to imply that the COMPANY will open the account for the person if the individual fails to do so. Since you usually have to provide a Social Security card to open an account, and since there are all kinds of tax implications, etc., I can’t imagine that an employer can open an account on an employee’s behalf without their permission. ---
**Author:** ![Stillwell\_Angel](https://avatars.discourse-cdn.com/v4/letter/s/96bed5/32.png) [@Stillwell\_Angel](https://boards.straightdope.com/u/Stillwell_Angel)\ **Post date:** [May 14, 2006, 2:59pm UTC](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640/60 "2006-05-14T14:59:16Z")
[QUOTE=Lissa] Child support comes out of a state employee’s check before they even get it. [/QUOTE] Yes Thank God. My son’s father also works at a prison. I don’t know if they do direct deposit now or not (they didn’t when we were still married) but with his money managing track record I am ever so grateful the state nabs my son’s share before they hand my ex his paycheck. I have mandetory direct deposit at my workplace and love it. No more waiting in line on Friday’s to cash a check. I live completely off my debit card & checkbook. Occasionally I may pull ten or twenty bucks cash out of an ATM just for pocket money to use on vending machines at work & such. [Previous page](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640.md?page=2) [Next page](https://boards.straightdope.com/t/how-in-gods-name-can-you-not-have-a-bank-account/356640.md?page=4)