Whether or not Amish individuals use banks depends on the rules enforced by the community leaders.
Some Amish groups use banks, some don’t. Some Amish communities allow their members to have a bank account for their business but forbid them from having a personal bank account.
Some groups allow their members to have interest-bearing savings accounts, some don’t.
While some ultra-conservative Amish communities avoid banks and conduct their financial transactions using only cash and bartering, the majority of Amish communities use banks in some capacity.
Credit Cards, Checks, Online Banking, and Cash
Most Amish people utilize banks for basic checking and savings accounts.
Online banking is not commonly used by the Amish population, with business owners being the exception.
While some Amish business owners may use credit cards for managing cash flow, it is still uncommon for most. Typically, Amish businesses do not accept credit cards. However, this is slowly changing in heavily touristed areas.
When visiting Amish villages, make sure you have cash on hand for purchases.
Cash is still king among the Amish.
What Do the Amish Use Financial Services For?
Amish people believe in saving for old age or ill health. They regularly make deposits into their savings accounts.
The Amish view land as an investment. They use banks to complete transactions related to buying and selling land.
Checking accounts are a common means of conducting transactions for the Amish.
The Amish also use banking services to take out business loans and mortgages. When it comes to lending for business purposes, the Amish are generally considered to be dependable borrowers.
Smaller, local banks are usually preferred by the Amish community for their banking needs.
The Amish have a favorable reputation in financial matters. They are highly regarded as customers for their prompt payment record and low delinquency rate.
Banking with the Amish Is Different
Have you ever heard of The Bank of Bird-in-Hand? Yes, that’s the name of a real bank.
The Bank of Bird-in-Hand was founded in Pennsylvania in 2013 by a group of local Amish and non-Amish investors. It caters mostly to Amish borrowers.
As you can tell by its name, this bank operates a bit differently.
The lending decisions of The Bird-in-Hand Bank are based on building long-term relationships with customers and evaluating their character, collateral, and income within the context of their community.
According to The American Institute for Economic Research, this approach has resulted in a healthy balance sheet, few charge-offs, and recognition as one of the 200 healthiest banks in America.
The bank’s bricks-and-mortar branches feature a drive-through window specifically designed to accommodate horses and buggies.
And there’s more.
The Bank of Bird-in-Hand has a fleet of banks on wheels. The financial institution has invested $1 million in four 29-foot-long mobile banking units.
Mobile banking units have been created for the Amish community to eliminate the need for them to travel to the branch offices.
Alternative Financial Arrangements in the Amish Community
The Amish generally have a unique relationship with modern banking systems.
While many Amish communities do use banks, some prefer to use alternative financial arrangements that are more consistent with their traditional values and way of life.
Mutual Aid
The Amish practice of mutual aid involves pooling resources within the community to provide financial support to members in times of need.
This can take the form of informal loans or gifts from one member to another, or through structured programs such as church-based aid societies.
Locally-Based Credit Unions or Community Banks
Some Amish communities loan money from locally-based credit unions or community banks to support their small businesses.
These institutions often have a more personal approach to lending. They are also more accommodating to the needs and values of the Amish community.
Conclusion
There are many Amish individuals and communities that use banks. On the other hand, some Amish communities prefer alternative financial arrangements that better align with their traditional values of self-sufficiency, community support, and simplicity.