13 Easy Ways to Save Money without a Bank Account

Last updated on September 21st, 2024 at 10:28 am

You’re at times stressed with the banking system when it comes to your savings, right? But there are some easy ways to save money without a bank account that can be used.

I don’t keep money in the bank if I may need cash in a few days to come. Not because I don’t trust the banking system, the need for cash at hand dictates.

You can keep some savings in the bank and at the same time make savings without a bank account. For long-term savings, I normally use a bank to ensure the safety of my funds. And It’s also possible to save money safely without using a bank account with little to no cost at all.

How to Save Money without a Bank Account

All the money-saving practices that we are going to look at are realistic and proven to work. Let’s now get into the detailed list of easy ways to save money without a bank account.

1. Through Online Apps

If you don’t want to stay with cash, there are online apps that can also save you money without moving a step. Apps like Acorns turn your spare change into an investment that will earn you dividends.

How it works, right?  For example, when you make a purchase of $75.50 using the app, the balance of $0.50 is put to saving on the platform until when it adds up to $5.

After the fractional savings have accumulated to $5, they are then turned into an investment by buying shares of companies. You save and your savings are invested for dividends in the near future.

All this is done online without moving a step at very minimal costs compared to the bank. Using online apps like Acorn can help you save a lot of money.

2. Using Post Office

Save money with post office instant savings or ISA account to invest in a post office bond. You don’t need to have a bank account, everything is done at the post office.

When you buy a bond you’re paid a fixed interest after a certain time frame of fixing the savings in the form of bonds with the post office.

From the very first day of investing the money, you can tell the rate of interest to be gotten after the bonds have matured. Investing in bonds is long term but it’s a good alternative to a bank account.

3. Use a Prepaid Card

If you want to save money without using a bank account you can use a prepaid card. The process of obtaining a prepaid card is related to that of a bank but different when it gets to accessing money.

Saving with a prepaid card there’s no interest earned but there are charges for the service that you need to consider whether they are worth it.

Using a prepaid card is a great bank account alternative but before doing anything, put an eye on the terms and conditions of the service for convenience purposes.

And when you find that the terms of service are worth the cost, then you can decide to do away with saving money using a bank account.

Can I receive a paycheck using a prepaid card? Sure, with an account number and routing number available it can be deposited to the prepaid card. Therefore, if you’re finding a lot of challenges using a bank account, a prepaid card is a better option.

4. Keep Money in a Safe

A safe is also among the most effective ways to save money without using a savings account. It’s traditional but widely used more so when the banking system isn’t trusted in some places.

Many people around the world are using this kind of method to save money even though it might not be very secure. Look out for a safe that will keep your money safe and secure.

When planning to buy a safe lookout for specifications like waterproof, alarm system, fireproof, type of coding, and more.

Check out online platforms like Amazon to get a safe that can’t easily be tampered with and is worth the cost to keep money safe. Mind the type of passwords and codes used for any given safe.

5. Investing

You can save money without a bank account by investing it to get returns from the investment. But before investing the money make sure that you have backup savings to take you through for almost a year.

I do savings in the bank but when they accumulate I invest some money into income-generating activities and the financial markets. Let your savings work for you and only keep that amount in the bank you’re most likely to use shortly.

However, investing isn’t like putting money into a fixed deposit account where you’re assured of interest returns, it’s risky but rewarding when done with best practices.

Sure, you can make a lot of money when you invest savings using the right financial knowledge from professionals for expert guidance on how to invest your savings.

6. Keep It with an Immediate Friend

If you can’t save the money yourself, keep it with a friend you trust. Some people are just good at saving money so long as you have trust in them.

It’s somehow risky to entrust a friend with money but nothing to do when you want to do away with the stress at the banking halls. Use a friend or family member who won’t disappoint you with your money in the end.

Some people have lost money to friends they trusted in the first place but ended up becoming enemies or sorting out things in courts of law.

Keeping your savings with a friend isn’t a bad idea if you don’t want to use a bank account, but mind the kind of people you want to entrust your money with.

7. Certificates Of Deposit

Using certificates of deposit is locking your money for some years to earn a higher interest compared to a savings account at the bank.

This may not make sense if you’ve never tried it out but still, you can give it a shot to understand the way it works. Yes, get ready to part ways with your money for some good years when you’re using certificates of deposit as an alternative.

With certificates of deposit cashing out before the agreed-upon date the charges are very high compared to a saving account at the bank.

Long-term certificates earn higher yields compared to short-term certificates but the choice depends on your needs. And this brings out the real term of saving money whether short or long-term savings.

8. Credit Unions

Another easy alternative to a bank account is with a credit union, at your service anytime. These can offer services related to the banking system but they are not run by the bank.

Credit unions have very friendly offers in terms of loans, savings, and more to their members since they are not much profit oriented. Compared to banks, credit unions are controlled by the national credit union administration.

Most people that get stressed with the banking system end up finding better alternatives like credit unions with welcoming offers.

When it comes to documentation, credit unions’ terms of service are not as stringent as it is with banking institutions. Look out for the best credit unions that can offer the best service to safely keep money aside with no bank account.

9. Local Storage Facility

Do you know that your money is also insured when you’re using a trusted local storage facility? This makes it better than using a home safe without insurance.

Local storage facilities are designed in a way that ensures proper security for any items in place. The storage areas have all the required security equipment to keep things safe.

However, the facility also has some downsides in terms of convenience and storage charges compared to using a home safe, moving to the storage facility is sometimes challenging.

However, using a local storage facility is also another great alternative for saving money without using a bank account.

10. Save Money in a Hidden Object

A Hidden object can be any physical item inside the home or outside that you think can keep the money safe without anyone noticing it. A list of simple things that you use every day can be used to keep the money safe.

Yes, they are items people with bad intentions can’t easily suspect they contain any money. And some that I have tried and tasted to work include a dictionary, hair brush, pillow, and a simple tin with a cover.

But with all these items it’s upon God’s mercy for someone not to find the money, there is no insurance, can easily be accessed, and more other downsides.

11. Use the Backyard Garden

Keeping money in a garden it’s a practice that has been around for long and it has worked for most people. If you’re losing trust in the banking system, the backyard garden can easily be an alternative before trying elsewhere.

When money is put in such places make sure you use objects that can keep it safe for long no matter the weather conditions outside.

You need to put in some money to buy an object that can store the money or any other valuable safely for a long time.

Also, talk to someone you trust about it such that in case anything happens to you like death or brain damage the money or any treasure can easily be found by your loved ones.

Honestly, a lot of money and other valuable items have been lost in such a way due to selfishness and lack of trust despite being better alternatives.

12. Use Saving Pots

We all know that money can never get enough, hence no need to wait to accumulate to start saving. Using saving pots is a quick alternative to start saving without any lengthy documentation.

Putting money aside as savings is good financial practice despite where you keep it. And piggy banks are a convenient way to diversify savings compared to a standard bank account.

They work best when you want to allocate money to sinking fund categories to cover expected future costs. A saving pot is also among the most effective ways to start putting money aside without using a bank account.

13. Pay Off Debt

Instead of putting money into the savings account, why not divert it to clearing debt if any? Paying off debt in time saves you money on interest paid back on borrowed money.

It doesn’t make sense to put money in a savings account when you have a high-interest debt that you need to service.

I would then suggest focusing on clearing debt in time to reduce the rate of interest charged on borrowed money to save. Sure, it saves you money indirectly the shorter the payback period.

FAQs

• What Do I Need To Start Saving Money Without A Bank Account?

With most of the saving strategies listed, you need little to no documentation at all. For example, to keep money in a backyard garden you don’t need any documentation, for a home safe you need some money to buy it and certificates of deposit require some documentation to get started.

• What Are The Safest Ways To Save Money Without Using A Bank?

The safest ways to save money with no bank account are those with insurance for your money. Some of the insured ways include a local storage facility, post office, certificates of deposit, and credit unions.

And this means that when an insured event like theft and fire happens you’re compensated for the loss. It’s not the case with uninsured savings, you just have to bear the loss.

• Can I Access My Savings Anytime When I Save Money With No Bank Account?

Yes, you can but it depends on the strategy that you’re using to save the money.

Some ways like using hidden objects, backyard gardens, and saving pots give quick access to money where as certificates of deposits require some time to cash out. And when withdrawals are done before time there are high-interest charges attached.

Conclusion – Save Money without a Bank Account

Saving money with no bank account is one of the quickest approaches you can use to start saving for your future goals. And also if you don’t have trust in the banking system or are stressed with lines at the banking hall it is surely an option.

Though some ways are a little related to the banking system procedures like credit unions, they are a lot more efficient compared to the bank.

Hope the list of ways to save money with no bank account has enough of what you need but also we shall keep on updating it for the best.