Though paper checks have become less common in recent years, there are still situations where you might receive a payment in the form of a paper check. Whether it’s a Christmas check from your Great-Aunt Marge, a missed payroll direct deposit, or a tax refund, it’s important to know how to cash a check and access your money quickly.
Step-by-step guide to cashing a check
Cashing a check is easier than you might think. Depending on your financial institution and preferences, there are multiple options available to you. Here’s a breakdown of how to do it:
Decide if you want to cash it or deposit it
There’s a difference between cashing and depositing a check. Cashing a check means immediately trading it for cash, while depositing a check involves putting the payment into your chosen account. Consider your options carefully to determine the best course of action.
Endorse the check
Before cashing a check, make sure to endorse (sign) the back of it on the indicated line. This verifies that you are the intended payee and allows the bank to process the payment.
Bring your driver’s license or ID
To cash a check, you’ll need to provide proof of identification. Most banks and check-cashing facilities require a valid driver’s license or state ID.
If cashing, decide where to go
If you prefer to cash your check on the spot, consider your options. This may include visiting a local bank, the payer’s bank (if there’s a local branch), or finding a check-cashing service in your area. Keep in mind that there may be limits on how much cash you can receive immediately.
If depositing, choose your preferred method
If you’d rather deposit your check instead of cashing it, you have a few options. You can visit a local branch and make the deposit with a teller, use an ATM, or utilize online/mobile-app check-deposit tools offered by your bank.
How much does it cost to cash or deposit a check?
Cashing a check at your own bank typically incurs no fees. However, if you don’t have an account with the issuing bank, they may charge you a fee. Alternatively, you can use a check-cashing service, which may charge a flat fee or a percentage of the check amount. These fees can vary depending on the type and value of the check, as well as your location.
How to avoid fees when cashing a check
It’s always frustrating to pay unnecessary fees when cashing a check. Luckily, there are ways to avoid them. Here are a few strategies:
- Cash the check at your own bank or the issuing bank (if they don’t charge fees to non-account holders).
- Deposit the check into your account and then withdraw the cash separately.
- Request future payments via ACH transfer or direct deposit to eliminate the need for physical checks altogether.
Can you cash a check without a bank account?
Yes, you can still cash a check even if you don’t have a bank account. All you need, along with the original check, is a valid government-issued ID such as a driver’s license. Consider the following options:
- Visit the issuing bank if it has local branches. They may waive fees for non-account holders, but some may charge a nominal fee.
- Utilize a check-cashing service, either at standalone check-cashing companies or at retailers and grocery stores. These services typically charge a percentage-based fee or a flat fee.
Where to cash your check
Where you choose to cash your check depends on your banking situation and your desire to avoid fees. Consider the following options:
- Your own bank: Cashing or depositing a check in your own bank account incurs no fees.
- The issuing bank’s branch: The bank that issued the check may or may not charge non-customers for this service.
- Check-cashing businesses: These services exist both as standalone companies and at retailers. Expect fees and potential cashing limits.
- Retailers offering check-cashing services: These services may charge a fee or percentage of the check amount, with state-imposed maximum limits.
Where not to cash your check
To ensure a smooth cashing or depositing process, avoid certain places, including:
- Banks or credit unions where you don’t have an account and that didn’t issue the check.
- Retailers without check-cashing services.
- Businesses or retailers with lower check-cashing limits than the amount written on your check.
- Places that charge exorbitant fees for cashing checks.
Remember, taking a check to a business that doesn’t cash checks will only result in a denied transaction. If you’re not an account holder at a bank or credit union, cashing a check there may incur fees. Additionally, check-cashing businesses and retailers may have cashing limits that you need to be aware of.
TIME Stamp: Cashing a check is easy, but it’s not always free and limits can apply.
If you’re unable to have a bank cash your check, there are plenty of local and national check-cashing companies and services available, including retailers like Walmart. While fees may apply and there may be cashing limits, you’ll still be able to access your money in just a matter of minutes.
Frequently asked questions (FAQs)
How do I cash a check from the bank?
To cash a check, visit a bank where you have an existing account or, in some cases, the bank that issued the check. These options are best if you want to avoid fees. You can also consider check-cashing businesses or retailers that offer check-cashing services, but keep in mind that these options usually involve fees.
Can you cash a check at any bank?
You can cash a check at a bank where you are a customer or the bank that issued the check, even if you aren’t a customer there. However, attempting to cash a check at another bank or credit union is unlikely to be successful.
Do checks cash instantly at an ATM?
If your bank allows check deposits at ATMs, there may be a delay before the funds are available. Depending on your relationship with the bank, the type of check, and the amount, the funds may be held for one or more business days before being released.