Do I need a bank account?
Short answer
A bank account is not the only way to get paid, but you usually need one. The CFPB says direct deposit of your paycheck and applying for a loan or mortgage usually require a bank or credit union account. An account is also safer than cash, with insured deposits protected up to $250,000.
By Alex Thomas · Founder of ITIN Club
Updated
What an account does for you
The CFPB gives several reasons to have one:
| Need | Without an account | With an account |
|---|---|---|
| Getting paid | A paper check you take to a bank or check casher, usually for a fee, or pay on a prepaid card | Direct deposit straight into your account |
| Cash | You carry it or keep it at home | ATMs around the clock, usually free at your own bank |
| Safety | Lost or stolen cash is gone | Insured up to $250,000 per account holder at an FDIC bank or NCUA credit union |
| Loans | A mortgage lender may turn you down because it can't verify your down payment | A banking history can make a car loan or mortgage easier |
| Deposits for rent, utilities, phone | You may have to put down more | A good banking history can mean a smaller deposit |
Federal benefits are another reason. The St. Louis Fed notes the government stopped paper checks for most federal benefits, including Social Security, on September 30, 2025.
Credit cards usually need one too. Capital One lists checking or savings account information among what it asks for when you apply.
Getting by without one
You can manage without an account, though cashing paper checks usually costs a fee. The FDIC lists two tools that don't need an account:
- Prepaid cards. You load money onto the card and spend it down. Some charge fees.
- Money orders. You pay the amount plus a fee at a bank, store or the US Postal Service, and get a paper you can send like a check.
Neither gives you the banking history that, according to the CFPB, helps with loans and deposits.
Want the full picture?
How to open a US bank account as a non-resident
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