In today’s tough economic times, safeguarding money and preventing any unnecessary losses or expenses is becoming increasingly important to the average American, and due to the uncertainty many people face in regards to the safety and future of their money, it may be time to consider an alternative to traditional banking.
What is becoming more evident is that as the US economy continues to struggle through the recession, bank account fees and interest rates on loans continue to surge upward and account balance requirements continue to be raised.
Many of the current well-known banks have certain account balance requirements for different types of accounts such as and account holders must ensure that their accounts always maintain the minimum balance requirements so that they don’t get charged fees or penalties for not meeting them.
This can be difficult for people who may be experiencing financial difficulties such as the slowing down or loss of employment, or having to make payments on a mortgage or loan that might be prone to fluctuating interest rates.
While there are some alternatives to regular banking such as credit unions or other financial institutions that do not require a minimum account balance or charge fees except in some extreme cases, these entities may require special memberships or be reserved solely for individuals employed by certain businesses or organizations.
When that is the case the only alternative left is a check and cash store that allows for customers to cash their paycheck and store their money in their own home.
The benefits of using a check cashing store are that customers usually do not need a permanent account with the store; they can usually just come in with their check and request the amount on the check in cash to take home with them provided they have the proper ID.
Some of the disadvantages to relying on these services include a greater risk for customers to lose their money in the case of events such as burglary or pick-pocket, not having a checking or credit card account, not having the option to direct deposit their paychecks, and the store may also charge a certain percentage of the check or small fee to cash it.
But customers also do not have to worry about losses from account balance fees that bank account holders can incur, and they also don’t have to worry about having their account frozen or hacked into.
While losses from identity theft are still possible if the customer uses online accounts with the check cashing store such as PayPal, the losses can be smaller due to the customer having complete control over how much money they wish to have in their online account, and not having a bank account linked to it that hackers can find and empty of its funds.
Even though using the check cashing store will not give the customer the benefit of earning interest that bank account holders earn in savings accounts, CD accounts, or other related accounts, their money also will not be subject to interest taxes that might be imposed on them by the government if their interest earned meets certain criteria.