Wondering how to find a secure place to store money without a bank account? Luckily, there are many alternatives to a traditional bank account. From stashing your cash in a safe to using digital wallets, there’s an option for everyone.
With so many alternatives available, choosing the right one can be overwhelming. Not to worry. This guide on how to store money without a bank account has you covered. Let’s walk through some options, pros and cons, and other factors to consider when choosing where to store your money.
Is it possible to store money without a bank account?
First things first: Is storing money without a bank account possible? Absolutely. You have plenty of options.
That said, storing money outside a bank account brings some risks and limitations. Consider the following:
- Security: Is your money protected from risks like fraud? Is the storage method legal?
- Accessibility: Can you access your money to spend, send, and save as needed?
- Growth: Does the storage solution encourage financial growth and stability?
Ask these questions while researching how to store money without a bank. That way, you’ll find a reliable solution and peace of mind.
5 options for storing your money without a bank account
Choosing the right way to store money can be daunting. We’re here to help. Here are five bank alternatives and factors to consider when deciding which works for you.
Physical safes
A physical safe is a popular option for storing money without a bank. Safes offer a secure way to store cash and other valuables at home or in another familiar location.
Generally, a physical safe is secure but can be more susceptible to risks like theft, fire, or loss. To help avoid these risks, choose a fireproof safe and change your combination often. For an added layer of security, have another way to store your money (check out the rest of the list for options). That way, if a security breach does happen, you still have access to funds.
Prepaid debit cards
A prepaid debit card is a great way to store money without a bank, and it has many of the convenient features of bank-issued debit cards.
The difference is that you load funds onto the prepaid debit card directly rather than having the card connected to a bank account. There are even international prepaid cards, like the Western Union Prepaid Visa—perfect for taking along on your travels or sending money to loved ones abroad. After loading funds, you can use the prepaid debit in the same way as a bank-issued card.
Note: Prepaid debit cards may charge service fees when loading funds or limit use to certain businesses. Before purchasing, ensure you understand the terms and limitations.
Digital wallets
A newly popular way to store money online without a bank account is in a digital wallet, like a cryptocurrency wallet. Digital wallets store your payment information so you can pay using your phone, without cash or cards. You can also link prepaid cards or gift cards to digital wallets like Apple Pay or Google Pay as opposed to linking bank-issued cards.
Certain digital wallets may not be available in all countries. And if they are, they may not be accepted everywhere. We recommend having a backup payment method to work around that limitation.
As for cryptocurrency, remember it can be volatile. If you’re looking for a lower-risk way to store money, consider other options like credit unions or peer-to-peer (P2P) payment apps.
Peer-to-peer payment apps
Peer-to-peer payment (P2P) apps, like Venmo or Cash App, are among the top choices to store money online without a bank account. And they’re among the easiest ways to send money without a bank account.
Peer-to-peer payments use an app to transfer money directly from one person’s account to another. This eliminates the need for bank accounts when transferring to friends and family.
While peer-to-peer payment apps make storing and sending funds easier than ever, many need a connection to a traditional bank account to get started.
Credit unions
Opening an account at a credit union offers many of the benefits of a bank account without the traditional bank experience. Credit unions are nonprofit and member-owned, meaning account holders have input into the credit union’s operations.
Some great perks come along with this. Many credit unions have more relaxed requirements than a traditional bank, so it may be easier to qualify for accounts. This includes savings and investment accounts that allow for financial growth.
You can connect a credit union account to P2P payment apps and digital wallets, giving you even more ways to store money without a bank.
Factors to consider when storing your money without a bank
Storing money without a bank account carries certain risks and limitations. Below, we’ll guide you through the top five things to consider when choosing a method for storing your money without a bank.
Security
Safety is the most important thing to consider when choosing where to store your money. This includes how to send cash safely and securely store your funds.
While traditional banks offer insurance, other methods of storing money may not. During your research, ensure the terms and conditions outline how they protect your funds.
While a physical safe offers considerable security, it can still be vulnerable to theft, fire, or loss. When choosing a physical safe, look for options with extra security, like fingerprint recognition and fireproof materials.
Accessibility
Aside from the security of your funds, accessibility is the next most important thing to consider when deciding where to store your money. It’s crucial to have quick and easy access to your money.
Some options for storing money without a bank may limit how and when you can access your funds. Sometimes, there’s a days-long delay before you can receive your money. This is not ideal in an emergency or even in managing day-to-day finances.
Fees
One of the top reasons you might want to store money without a bank account is to avoid excessive fees. Bank account alternatives can sometimes include hidden fees or added costs for premium features.
For example, some P2P payment apps can take up to five business days before granting access to your funds. But you can typically instantly transfer funds into the app for a fee, usually a percentage of the balance you’re transferring.
Each form of storing your money without a bank may have added fees. Ensure you look out for these when researching your options.
Bill pay and purchases
An important question to ask yourself when picking a storage method: Does this make my life easier? Consider the practicalities of your day-to-day life when choosing how to store money without a bank account.
You can pay bills online using other options, like prepaid debit cards, like using a credit card or online banking. However, some businesses do not accept prepaid debit cards, so you’d need another option.
Cash is a great choice if you don’t mind paying bills in person. But if you prefer to pay from the comfort of your home, P2P payment apps or digital wallets may be a better choice.
Legality and taxes
Protecting your money is important, and so is protecting yourself. For this reason, you’ll want to ensure that the way you store your money is legal.
Be sure that the option you pick to store money without a bank outlines how they follow compliance and legal standards in your country. This information should be readily available on their website or any form you complete to sign up for services.
If you have savings or investments, report your income or earnings, like interest or capital gains, to your tax authorities. Follow these important steps to look out for yourself and your funds.
Why you should consider storing your money with a bank
While there are many convenient ways to store money without a bank account, there are some solid reasons why you should consider storing your money at a traditional bank:
- Security: Banks offer multiple forms of security, including insurance, fraud protection, and more. Their security measures are more robust than other options and align with government-mandated legal requirements.
- Convenience: A traditional bank account offers convenience across all financial needs. Expect easier access to alternative payment options, including P2P payment platforms, digital wallets, and more. Plus, you’ll have access to a wider variety of products and better rates on loans and mortgages.
- Financial growth: Banks offer many products and services to help with financial growth, such as interest-yielding accounts, investment accounts, and financial planning tools.
Send money with Western Union, bank or no bank
Now you know where you can store your money without a bank account. But what if you need to send money without a bank account? With money transfer providers like Western Union, you have options.
Send money online or in person with just a few clicks. And if you do have a bank account, you can easily send money between bank accounts with our app or online platform.
We also offer the Western Union Prepaid Visa Card, which features all the benefits of a typical debit card but with the power to send and receive money transfers on the go. Just load it with funds, activate it, and you’re good to go.
FAQs
What are the most common ways to store money without a bank account?
There are several popular ways to store money without a bank account. Some people opt for physical storage, like in-home safes, while others opt for online solutions, like peer-to-peer payment apps and digital wallets. For those looking for benefits like those of a bank account, opening an account at a credit union can be a good option for storing money with a bank. Credit union accounts offer increased access to other storage methods, including digital wallets and peer-to-peer payment apps.
What safety measures can I take when storing money without a bank?
There are a few simple ways to ensure your funds are secure, wherever you store them. The top things to consider are security, accessibility, and legality. When choosing where to store your money without a bank account, pick an option with clear terms and legal compliance messaging.
