Yes, most Amish communities use banks, but they do it differently than the general population

The Amish do use banks for basic services like checking accounts, savings accounts, and loans. However, they approach banking with specific restrictions based on their religious beliefs. The Amish are not opposed to banks themselves — they are opposed to debt, interest, and financial practices they see as promoting pride or dependence on worldly systems. This means an Amish person might have a savings account but avoid a credit card, or take out a farm loan but not a personal line of credit.

Different Amish communities have different rules. A conservative settlement might forbid any borrowing at all, while a more progressive community might allow business loans. The bishop of each community sets the standards, so what is acceptable in Lancaster County, Pennsylvania may be forbidden in Holmes County, Ohio. Banks that serve Amish customers have learned to work within these boundaries.

Key Takeaways

  • Most Amish communities use banks for savings and checking accounts, but avoid credit cards and consumer debt.
  • The Amish restrict borrowing based on religious principle — they see debt as creating dependence and pride — not because they distrust financial institutions.
  • Each Amish community's bishop decides what banking practices are permitted, so rules vary widely between settlements.
  • Amish-owned businesses often use bank loans for equipment and land, but personal borrowing is typically forbidden.
  • Some Amish communities have created their own lending networks and informal credit systems to avoid mainstream banks entirely.

What the Amish will and won't do at a bank

An Amish person will typically open a checking or savings account at a bank to hold money safely and make deposits. They use these accounts for business income, household savings, and paying bills by check. Many Amish farmers and business owners need a bank account to conduct commerce with non-Amish suppliers and customers.

What they will not do is borrow money for personal consumption. Credit cards are forbidden in nearly all Amish communities. Car loans, home equity lines of credit, and personal loans are also prohibited. The reasoning is theological: the Amish believe that debt creates a form of servitude and that borrowing for wants (rather than genuine needs) is a sign of pride and lack of faith in God's provision.

Business borrowing is more complicated. Many Amish farmers and entrepreneurs take out loans to buy land, equipment, or buildings for their business. This is often permitted because the loan is tied to an asset that produces income. A loan to buy a tractor for farming may be acceptable; a loan to buy a truck for personal use is not.

How Amish communities restrict their own borrowing

Some Amish settlements have created informal lending networks to avoid banks altogether. Wealthier community members lend money to those who need it, often at no interest or at a rate lower than a bank would charge. This keeps money within the community and reinforces the principle of mutual aid that is central to Amish life.

Other communities use a practice called mutual aid lending, where the church itself acts as a lender. If a family needs money for a legitimate purpose — a medical emergency, a business investment, or a home repair — they can petition the church for a loan. The terms are set by the community, not by market rates, and repayment is enforced through social pressure and church discipline rather than legal contract.

A few progressive Amish communities have started credit unions specifically for Amish members. These are cooperative institutions owned by the members themselves, which aligns better with Amish values of community control and mutual benefit than a commercial bank does.

Why the Amish avoid debt but not banks

The Amish distinction between banks and debt comes from their reading of scripture and their historical experience. They see borrowing as creating a relationship of dependence that should exist only between a person and God. Proverbs 22:7 — "The borrower is servant to the lender" — is cited frequently in Amish teaching about debt.

Banks themselves are not seen as inherently sinful. A bank is a neutral tool for storing money and conducting transactions. What matters is how the tool is used. Taking out a loan to buy something you cannot afford, or borrowing to maintain a lifestyle beyond your means, violates Amish principles. But using a bank account to hold savings or to manage business income does not.

This is why you will find Amish business owners with substantial bank accounts and Amish farmers who have taken out equipment loans, but almost no Amish people with credit card debt or personal loans. The line between acceptable and forbidden banking is drawn at the point where debt becomes a personal lifestyle choice rather than a business necessity.

Which banks serve Amish customers

Banks in areas with large Amish populations have adapted their services to accommodate Amish customers. Some banks in Pennsylvania, Ohio, and Indiana have staff who understand Amish restrictions and can explain which products are compatible with their beliefs. These banks may offer accounts without debit cards (since the Amish often prefer not to use them), accept cash deposits from businesses, and structure business loans in ways that align with community standards.

A bank serving Amish customers might not push credit products or try to sell investment services. They understand that an Amish customer wants a straightforward savings account and a way to deposit business income, not a financial advisor or a credit line. Some banks have even hired Amish employees to work in back-office roles, though this is less common.

National banks like PNC and regional banks in Amish country have learned to serve this market. But many Amish prefer smaller, local banks where they can build a relationship with the same teller or loan officer over years.

What happens when an Amish person needs to borrow

If an Amish farmer needs to buy land or equipment, the first step is usually to ask the church or the community for a loan. If that is not possible, they will approach a bank, but only for a business purpose and only with the bishop's approval. The bishop may consult with the church council before giving permission.

An Amish business owner applying for a loan will typically bring financial records, a clear explanation of what the money is for, and documentation of the asset being purchased. Banks have found that Amish borrowers are extremely reliable — default rates are very low because the social consequences of not repaying a loan within an Amish community are severe.

If a family faces a genuine emergency — a medical crisis, a house fire, a business failure — the community often steps in before a bank does. Amish communities hold benefit auctions, where goods and services are donated and sold to raise money for a family in need. This is seen as more consistent with Amish values than taking on debt.

How Amish savings and financial planning work

Because the Amish cannot borrow for major purchases, they must save in advance. An Amish family planning to buy a house will save for years, often putting money into a bank savings account. This means Amish bank accounts tend to have higher balances than the general population, relative to income.

Amish people do not invest in the stock market or use retirement accounts like 401(k)s or IRAs. They save in cash and bank accounts. Some communities allow savings bonds or certificates of deposit, which are seen as safer than stocks. The goal is to preserve capital, not to grow it through investment.

Retirement planning for the Amish is built on the assumption that children will support aging parents, and that the community will help if needed. There is no expectation of a pension or investment returns. This is why saving for retirement in the Amish sense means having enough cash set aside to live on if you can no longer work, not building a portfolio.

Frequently Asked Questions

Do the Amish pay taxes?

Yes, the Amish pay income tax and property tax like everyone else. They do not get a religious exemption from federal income tax, though some Amish business owners have negotiated with the IRS over self-employment tax. The Amish do not pay into Social Security, and the IRS has allowed them an exemption from that program based on their religious belief in community mutual aid.

Can an Amish person get a mortgage?

Yes, but it is less common than you might think. Many Amish buy land and homes with cash saved over many years. When they do take out a mortgage, it is usually only with the bishop's permission and often from a bank that specializes in Amish lending. The mortgage is treated as a business loan tied to an asset, not as consumer debt.

What if an Amish person needs emergency medical care they cannot pay for?

The community raises money through benefit auctions, donations, and church support. The Amish do not carry health insurance, so they negotiate directly with hospitals for discounted rates or payment plans. Banks are not involved in this process — it is handled through community networks and direct negotiation with medical providers.

Do Amish banks charge interest?

Yes, Amish customers use regular banks that charge standard interest rates on loans and pay interest on savings accounts. The Amish restriction is on borrowing itself, not on the interest rate. However, some informal community loans are made at no interest or at a reduced rate as an act of mutual aid.

Can an Amish person use online banking?

This depends on the community. Many Amish communities forbid computers and internet in the home, so online banking is not an option. However, some progressive communities allow limited internet use for business purposes, and a few Amish business owners do use online banking. The bishop's rules determine what is permitted in each settlement.