Many people "don't trust banks" not because they think there are elaborate conspiracies going on behind the scenes but merely because they think that the minute

Many people "don't trust banks" not because they think there are elaborate conspiracies going on behind the scenes but merely because they think that the minute they slip up the banks are going to take advantage of them as much as they can. And they are almost exactly correct in that matter. NSF fees are basically the equivalent of high-interest short-term loans. In some ways they are worse because the interest is assessed instantly and reducing your cash flow. Let's say you screw up and end up $5 off on your budgeting. OK, no big deal, maybe you take $5 out of your cash emergency savings (which might be, oh, $10 or $20) or you borrow $5 from a friend or family member until payday and you make things work. But if you have a bank account and you're off by $5 then you get hit with an NSF fee instantly. Now your bank account isn't just $5 in the hole, it's maybe $35 negative. So now you can't use it for anything until you come up with that extra $35, which is going to be more stressful to deal with. And then once you get things squared away after payday you're out that $30 for no perceptible real value. And that's assuming you don't get a cascade effect happening, which can easily happen if you're in a temporary money crunch. If you're living close to the margins you can't afford to risk that sort of expenditure for no return happening every once in a while. Some people simply can't afford to live that way, it's easier to live on a cash basis. You cash your paychecks at the bank they were issues or you go to a walmart and you pay a bit of overhead. You pay your bills in cash or via money order or cashier's check. It'll cost a bit to live that way, a lot more than $30 a year generally, but it's predictable and it's under your control.