A shocking number of people are not opening bank accounts these days. They say flat out that they do not need a fancy institution to hold onto their money for them. Instead, they’d rather invest their money other places and keep a store of cash under the mattress in the bedroom.
A lot of the trouble comes from being unable to afford the demands of today’s banks. Opening and funding a bank account is more expensive than ever before.
Some families simply can’t afford the financial burden of claiming a spot in the vaults of a major bank. They don’t make enough money to justify that kind of investment.
Minimum Balance Requirement Banks also demand a minimum balance be kept within the account at all times, meaning that you are instantly penalized if you do not meet those requirements. For some families, they are just earning enough to keep a roof over their heads and food on the table, they can’t afford to not have access to some of the funds at the bottom of the barrel.
Overdraft Fees, should a family forget their balance and overdraft, they are penalized $35 on average for the overdraft protection. True they managed to walk out with whatever they were purchasing, but often times, they would rather be without that purchase instead of with it and 35 extra dollars in the hole.
Many American families are turning away from the notion of a bank account because the rates are getting unaffordable. Instead, they are finding alternative ways to cash, save and spend their hard earned dollars. Prepaid plans, cash checking and payday loans are just a few of the ways they are managing. And they are doing it without the culturally pressured bank account. Guess what? They are doing just fine.