Can You Live Without A Chequing Account? General Finance
May 14, 2019
You have to recognize that you will not find better tool than the checking account to manage your money and your expenses. These accounts allow you to pay your bills, withdraw money and deposit your paychecks easily, yet there are other choices available to you. People with low incomes will be sensitive to these alternatives and will avoid the fees and minimum amounts sometimes associated with chequing accounts.
Here are some tips for managing your personal finances without having a traditional chequing account.
- Use a prepaid debit card.
To deposit your paycheque, the best option is the prepaid debit card. You will not have to pay a monthly fee for some of these cards if you make a direct deposit. Thus, your employer, who pays you by check, will deposit it in your card account to prevent you from doing it manually. You will find it easier to access your money even without a chequing account.
- Open a savings account.
Another option is to open a savings account in a traditional bank. You deposit your money in a savings account, transfer it to a prepaid debit card or cash it out. This will give you a safe place to leave your money without the expense of a chequing account. However, find out if you are asking for a minimum amount or fees associated with the savings account. In general, you will avoid expenses with a savings account more easily than with a chequing account.
- Use money whenever possible.
You can manually withdraw money from your savings account or purchase a prepaid debit card that offers access to an ATM with little or no charge. Cash will help you manage your budget first and then cover daily expenses without having to rely on a debit or credit card.
- Ask for a credit card.
The credit card can, but does not have to be a source of debt. Properly managed, it will help you cover your expenses and buy online without a traditional checking account. The key is to repay the balance each month on the due date. If you get there, you will not pay interest.
- Take a personal loan online instead of a credit card.
Another option is to completely forget credit cards and instead consider the personal loan online to cover additional expenses. Easy to obtain, the lender deposits the money into a prepaid debit card account within a few hours of loan approval.
A chequing account
A good compromise would be to have a checking account that you would only use to transfer money to the savings account, withdraw cash or put it into a prepaid debit card account. In case you have these two accounts, if your bank did not charge any management fees, you would find this option probably interesting. So you would take your chequing account to transfer funds elsewhere, but you would not use it to manage your expenses.