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It can be surprisingly difficult to get an account in the US between KYC rules, credit checks, balance requirements, and limitations on funding sources. The fee

It can be surprisingly difficult to get an account in the US between KYC rules, credit checks, balance requirements, and limitations on funding sources. The fees banks charge can be really significant to a low income and it’s often not worth risking your food or rent budget. The fees are often tailored to be very aggressive in low income or heavily minority areas. Even if you get an account open, many banks are super aggressive about closing accounts with low or no activity. There are “millennial” banks which are very customer focused but to get accounts there you have to have a computer or a phone with a data plan — and believe it or not those are still luxury items for many in the US. Living in rural areas where you only have a post office box or rural route address often excludes you from credit and banking products.

londons_explore 5y ago
The benefits of a bank account are also pretty small... There used to be great interest rates, but now a bank account for many is just an easy way to get into debt by accidentally going overdrawn, or doing things with a high fee attached. For those who can get paid cash and spend cash, the downsides of a bank account probably outweigh the upsides.
- zxcvbn4038 5y ago
  Not to mention that a single bank fee can wipe out a decade of interest.
- sumtechguy 5y ago
  I know people who deal with thousands in cash every month. They have no account and really never should. I am not even going to suggest to them to get one. They have extremely poor money management skills. Banks can be quite merciless if you are riding the line. They need the physicality of cash in hand to see they are spending too much. To me a 30 dollar fee is 'well that sucks'. To someone who is riding the line 30 bucks can mean a cascade of borrow from peter to pay paul, or 'well skip the power bill this month'. Which then makes the problem worse. This is not even a 'class' thing I have seen many highly paid, very smart people who just do not grok less out than in. Also do not spend it before you have it (I am getting paid tomorrow so I can borrow X and pay it off), one way ticket to massive credit card debt that old gem is.
- coredog64 5y ago
  I had an account with Chase that I only used to cash paychecks drawn on Chase. The money was then wired to my actual bank [0]. Someone managed to get my ATM card details and ran up a $100 overdraft. Chase didn’t care, charged me another $500 or so. [0] Paycheck was from a shady employer who frequently made “mistakes” in the amount of the check. Had I given them direct deposit access, they could have yanked money out of my pay with the excuse of accidental overpayment. By wiring the money I firewalled it somewhat.

londons_explore 5y ago

The benefits of a bank account are also pretty small... There used to be great interest rates, but now a bank account for many is just an easy way to get into debt by accidentally going overdrawn, or doing things with a high fee attached. For those who can get paid cash and spend cash, the downsides of a bank account probably outweigh the upsides.

zxcvbn4038 5y ago
Not to mention that a single bank fee can wipe out a decade of interest.
sumtechguy 5y ago
I know people who deal with thousands in cash every month. They have no account and really never should. I am not even going to suggest to them to get one. They have extremely poor money management skills. Banks can be quite merciless if you are riding the line. They need the physicality of cash in hand to see they are spending too much. To me a 30 dollar fee is 'well that sucks'. To someone who is riding the line 30 bucks can mean a cascade of borrow from peter to pay paul, or 'well skip the power bill this month'. Which then makes the problem worse. This is not even a 'class' thing I have seen many highly paid, very smart people who just do not grok less out than in. Also do not spend it before you have it (I am getting paid tomorrow so I can borrow X and pay it off), one way ticket to massive credit card debt that old gem is.
coredog64 5y ago
I had an account with Chase that I only used to cash paychecks drawn on Chase. The money was then wired to my actual bank [0]. Someone managed to get my ATM card details and ran up a $100 overdraft. Chase didn’t care, charged me another $500 or so. [0] Paycheck was from a shady employer who frequently made “mistakes” in the amount of the check. Had I given them direct deposit access, they could have yanked money out of my pay with the excuse of accidental overpayment. By wiring the money I firewalled it somewhat.