You have a check cashing Bank or credit union is the easiest way to get money without paying fees. Banks allow you to check personal, payroll, government, insurance and business.
Sometimes banks allow you to cash a certain amount of a check if the balance in your checking account is small. If you need to cash a check in a bank where you do not have an account, you will pay the fee.
Consumers who do not have a checking account can still cash a check at a retailer such as a grocery store or big box store, or a check cashing service.
Check cashing options are limited to more than 8 million Americans who are unbanned, says Bruce McClary, senior vice president of communications for the non-profit National Foundation for Credit Counseling.
“It emphasizes the benefit of having a checking or savings account with an insured bank or credit union, where people can take advantage of savings such as duty-free check cashing and earn interest on deposits,” he says. “There are many programs, such as believe, Where unbanked consumers may have access to special programs that remove barriers that stand in the way of access to mainstream financial services. “
Check issued bank
If you do not have a bank account, one option is going to the bank that has issued the check – all the checks state the name of the bank. It is a bank’s policy to cash its own check, but if you are not an existing customer, expect to pay a fee.
“It is likely that the average will be charged around $ 8,” says Mark Hamrick, senior economic analyst and financial bureau chief at the financial data company Bankrate. “If this is done on a regular basis, these charges can add up really quickly. Limitations may apply regarding check amounts, and old checks and two-party individual checks can be excluded.”
Government checks such as incentive, unemployment or tax return checks are easy to cash because they are supported by the federal or state government. Federal Deposit Insurance Corp, the agency that regulates financial institutions and Insures money In banks, due to the coronavirus epidemic, banks have been encouraged to waive fees.
To redeem the check, at least one type of identification such as driving license, government issued ID card or passport.
Cash the check at retail stores
Some retailers also offer check cashing, but will charge a flat rate or a percentage of the check. Big box retailers such as Walmart and large grocery store chains such as Publix, HEB and Kroger offer this service. Walmart charges $ 4, and in some states Kmart charges $ 1 or less – or nothing. Kroger’s fees start at $ 4, Texas-based HEB charges $ 3 and fees at Florida-based Grocery Publix vary from $ 3 to $ 6.
“Retailers offer checking caching services in part because they help drive store traffic or bring potential customers to the store,” says Hamrick. “Of course, they expect the customer to spend some money there as well, which makes sense.”
An example is the world’s largest retailer, Walmart, which has recently indicated that it wants to expand further in financial services, he says. Walmart charges $ 4 on cash checks up to $ 1,000, and $ 8 on checks over $ 1,000.
Use prepaid debit card
If you do not need to use all the cash from a check at once, you can load the check on a prepaid debit card and then withdraw cash from an ATM or retailer later. Expect to pay a fee to load the check on the card, as well as pay a fee to own the card. The advantage is that you may be able to deposit checks remotely.
“Prepaid cards offer another potential, less-than-optimal avenue,” Hamrick says. “Once the money is loaded on them, they can take dollars to reload for ATM withdrawal and also charge for checking the balance. Additional monthly fees may accrue if the card The price does not increase further. “
Avoid check caching services
Checking caching services usually charge the highest fee. Some of them are associated with payday loan shops. Some of the largest check cashing companies, Ace Cash Express and United Check Cashing, do not list their fees on their website.
“Check cashing outlets are seen as one of the most expensive and least desirable places with which to do business,” says Hamrick. “Some fees are tied to the value of a check for double digit fees. In addition, they may incur so-called membership or other additional fees, which is why they are seen as bad choices.”
Some companies charge more than one. Amscot charges a minimum of $ 3 and a maximum of $ 14.95 for checks under $ 1,000 and 2% for $ 1,000 or more. Depending on the location, Moneytree can charge 1.99% of the amount of a payroll check, and $ 1.49 for checks over $ 20. PLS charges 1% of the check amount, plus $ 1 for payroll checks and government benefit checks in the state, while other types of checks have larger fees.