Looking to cash a check without a bank account? You aren’t alone. More than 5% of American households don’t have a bank account. If you’re one of those who do not have a checking account, here’s how to cash a check.
For many people, it can be difficult to imagine living without a checking account. But it’s the reality for the roughly 8% of Americans who are living “unbanked”. Cashing a check without a bank account is possible, but you may have to pay a fee to do it. In some cases, you may have to do some extra legwork to make it happen.
Here’s what you need to know.
Cashing a Check at the Issuing Bank
Visiting the issuing bank is one of the easiest ways to cash a check. You can find the issuing bank’s name right on the check. If the bank has a branch near you, head over to cash the check.
Most banks will be willing to cash checks that have been issued from their accounts, which means you can visit a local branch of the issuing bank to get your check cashed. The big benefit of this is that you’ll often be able to cash both personal and payroll checks.
However you will most likely have to pay a service fee. With the exception of Capital One, which has no check-cashing fee, pretty much every bank charges a fee of anywhere from $4 to $10 to cash their own checks for a non-account holder.
This method typically costs the least of any cash checking method other than your own bank account.
Cashing a Check at a Retail Store
Many places offer check cashing at their service desk. The most popular retail stores offering these services include:
- Walmart: Walmart can cash checks up to $5,000 with the exception of two-party personal checks. You may only cash two-party personal checks up to $200.You can cash pre-printed payroll, government, tax, cashiers, 401(k) distribution, and insurance settlement checks. Walmart charges a flat fee for checks up to $1,000. The fees double for checks over $1,000.
- Money Services: You can find Money Services in many grocery stores, such as Kroger, Fred Meyer, King Soopers, Ralph’s, and Fry’s. You can cash payroll, government, income tax refund, insurance settlement, and business checks at Money Services.They don’t accept personal checks. Money Services charges a fee and can cash checks up to $5,000.
- Kmart: Kmart “Shop Your Way” members may cash checks at Kmart. They accept government, payroll, and tax refund checks up to $2,000.You may also cash two-party checks up to $500. Kmart charges a fee, but it’s much lower than many other retail outlets.
- Food Lion: Food Lion cashes payroll checks and tax refund checks up to $1,000. They also cash rebate checks and traveler’s checks (up to $499.99).They do not cash personal or two-party checks. You also can’t cash handwritten payroll checks.
Cashing a Check at a Check Cashing Store
This should be a last resort, as these sorts of establishments generally charge high rates for check cashing. In general, you can expect check-cashing stores to charge you a percentage of your check’s total, although some will also charge a flat fee on top of that.
Essentially, check cashing centers give you a short-term loan by giving you the cash right away. The service fee is their “interest” for the loan.
Cashing a Check Using a Prepaid Account
If you have a prepaid debit card, you may be able to deposit your check into the prepaid debit card account. Many services, such as InGo, allow you to deposit the check right from your mobile phone.
You take a picture of the front and back of the check and wait for approval. If approved, the funds will appear in your prepaid debit card account. If you aren’t comfortable sending the check via mobile app, some prepaid debit card companies have partner locations where you can reload your card.
Cashing a Check Using a Friend or Family Member
If you have a friend or family member whom you trust, and who has a checking account, you can cash your check fee-free by endorsing the check over to them to cash. This isn’t a favor you want to ask for regularly, but it can help when you are in a bind. In order for someone else to cash your check, you have to endorse it over to them.
When you endorse the check, you’ll sign your name and underneath write “Pay to the order of [friend’s name],” under which they’ll endorse the check. Their bank will then cash the check with no penalties.
Conclusion
Living without a checking account can put you at an economic disadvantage. But if you’re willing to put in some work, you can make sure you pay as little as possible in fees to access your checks.
When you have a bank account, check cashing is often a part of the services provided under the account agreement. Without a bank account, you have to think outside of the box and typically pay for the convenience of cashing a check.
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!