But cashing a check can be a bit complicated. If you receive checks from various income sources — knowing how to cash personal checks conveniently and inexpensively is a must. Read on to find out all you need to know! Convenience is key — but fees are also incredibly important. Especially if you have to cash checks over and over again — that could accumulate to a serious loss of profit over time.
Bear in mind that the fees will vary by region, the type of check you want to cash as well as the amount of the check — but the good news is that the state regulates check cashing fees that a store can charge.
One of the best places to cash a check is your local bank. Banks are for-profit while credit unions are non-profit, which explains the lower fees. By visiting the issuing bank, the teller will be able to look up the availability of funds immediately. As long as funds are available, they can cash the check and deduct any fee from the cash you receive.
Regions Bank is another great option because they have many locations across the U. Another convenient way to cash a check is at a grocery store or your local retailer. There are numerous grocery stores all over the U. There are two well-known reliable travel centers in the U. If you have a check in-hand—and especially if you expect to receive more checks in the future—you can use that check to open your first account. Opening an account will most likely save you a lot of time and energy.
Another option is to cash the check by taking it to the bank where the funds were drawn. In other words, go to the bank where the person who wrote the check has an account. For example, if the check draws from an account at Bank of America, you can walk into a Bank of America branch and request cash. To determine which bank issued the check, look for the name of a bank or credit union on the lower-left portion of your check. Treasury for cash, you should find those checks easier to cash at banks and retail outlets because they are considered safe checks.
Banks may charge fees to non-customers, so be sure to ask about costs before you proceed. You can always ask, though. Most retailers charge a fee to cash a check, though some stores may do it for free. Plan to endorse the check or sign it over to the store to get cash. Some national stores will offer check-cashing services, but you can usually expect a fee of at least a few dollars.
Anecdotally, Walmart has also been known to sometimes cash checks for free—especially government-issued checks such as stimulus checks and tax refunds.
Ask about check-cashing at the customer service counter. You can eventually turn those funds into cash by making a withdrawal at an ATM. To make a deposit, you use an app and snap a photo of the check with your mobile device. Prepaid cards can act as a substitute for fully-functioning accounts although a standard bank account is probably best : You get to deposit checks, keep money safe, and spend with plastic.
Check the fees carefully before you cash a check at a check-cashing store. The type of check you have is important. That includes tax refunds, Social Security benefits, and other checks drawn on the U. Often, a bank will give you access to the total amount of a government check since they know the funds are available. If you received a check from someone, you could take it to the issuer's bank to have it cashed.
Federal Deposit Insurance Corporation. Consumer Financial Protection Bureau. Treasury Check Security Features. Reload fees can be steep. Sometimes, prepaid card fees are scaled according to how quickly you want your money, and you can get dinged for expedited availability.
Check-cashing outlets are probably the most expensive places to cash checks. In addition to a membership fee, they might charge a first-time use fee. Fees to cash a check can range from 1 percent to 12 percent of the face value of the check.
Some businesses charge a flat fee on top of the percentage. Not only are check-cashing stores exorbitantly expensive, there is a risk of deceptive practices. The Better Business Bureau, for example, alerts consumers to a scam where customers of a check-cashing store are called by someone who claims to represent the business. The caller offers the customer a loan and requests payment to secure the loan.
Of course, the loan is never received and the customer of the check-cashing store gets scammed out of their cash.
Make sure the person you are signing over your check to is willing to cash the check, and that his or her bank will cash it. You should accompany your trusted friend to the bank in case the teller requires your ID or has questions about the check. Your friend must have the proper identification and be prepared to have his or her check dinged by a check-cashing fee.
In all of the methods laid out above, there is a personal and financial safety risk. Paper checks and cash can be lost or stolen.
How We Make Money. Libby Wells. Written by. Libby Wells is a contributor covering banking and deposit products. Edited By Lance Davis. Edited by. Lance Davis. Lance Davis is the senior editorial director for Bankrate. Lance leads a team responsible for creating educational content that guides people through the pivotal steps in their …. Reviewed By Allyson Johnson. Reviewed by. Allyson Johnson.
Allyson Johnson leads marketing and fundraising for Gateway Partners.
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