I recently saw a statistic that there are something like 7,000,000 “unbanked” households in the United States. This means these households do not have a checking account or savings account. They either use cash or prepaid debit cards for everything. I don’t understand this.
You should absolutely have at least a checking account, but ideally a checking account and savings account. Almost every bank will let you open both if you open one, and you should.
Now, I understand that a lot of big banks with physical branches charge ridiculous fees for things like overdrafts, minimum account balances, direct deposit, etc. I would avoid these banks like the plague. Do not do business with them. There are other options.
There are a lot of options, actually. Many internet banks offer free checking accounts. That’s free to open the account, no monthly fees, no overdraft fees, no ATM fees. Free checking. This is what you need. SoFi Money is a good account to check out. Ally Checking is also a good option.
You need a checking account so you can see where your money is. If your money exists only as cash, or only on a prepaid debit card, that’s a dangerous place to be.