Whether you choose to cash or deposit a check will determine how quickly you will have access to your funds.
When a check is cashed, the money is immediately available. You get to keep the whole cash and can use it right away whatever you like. It isn’t always simple or cost-free, either.A check is added to your bank or credit union account by depositing it. You won’t have to worry about the money being lost because it will be stored in a secure location. You may be able to withdraw some or all of the check amount from the bank, but it may take a few days until the full amount is available.
You don’t have to wait if all you want to do is deposit the check and have the bank start processing the payment right away. You may deposit your check from the comfort of your couch in the middle of the night thanks to the 24/7 availability of mobile check deposits at most banks and credit unions.
Cash the check if you need the money right away, but know that there will be some extra steps involved if you don’t have a bank account.
What Kind of Check It Is Is Crucial
It matters what kind of check it is that you’re trying to cash. For a personal or commercial check, Banks are only required to make the first $200 or so available to you the next business day.1 You typically have access to 100% of the cash one business day after the banking day, but Banks may regard government-issued checks differently.2
Cashier’s checks, payroll checks from local employers, and payments from insurance companies may also be acceptable, depending on your bank’s standards.
It may be necessary to deposit a check if you are unable to cash it for its full amount. The type of deposit you make will determine how quickly you can access the cash in this scenario. If you are in urgent need of funds, it is recommended that you make a deposit directly to a bank staff. You can also utilize a mobile device or an ATM, albeit there could be longer bank hold periods for these options.
Note
Even if the bank gives you cash or makes the money available, you are still accountable for the check’s insufficient funds. It’s important to remember that if you don’t pay a bounced check, the bank may take legal action.3
Make a trip to the bank of the check’s author.
Getting cash from the bank where the check was written is the quickest and safest option. That’s the financial institution where the check writer keeps their money, and it’s also the institution where you can get your hands on the money in a heartbeat. You can’t know for sure that the check is good and the money is in the account of the person writing the check if you go to any other bank.
The name or logo of the issuing bank will be printed on the face of the check. Any branch of the same bank will do; you need not go to the one where the check was written. Make sure the name on your ID is the same as the one on the check.
It’s possible that you’ll have to pay a small fee of a few dollars to cash the check if you don’t have an account there. Even if you are a customer, the bank may nonetheless refuse to cash the check for you. There’s also the fact that certain banks have strict limits on the total daily cash withdrawal amount, which could prevent you from cashing the check in question. If you need money quickly, it’s best to visit a larger branch of the bank.4
Use It at Any Bank You Choose
If the following apply to you, cashing a check at your own bank or credit union could be the best option:
The check won’t bounce or be returned to you because the drawer doesn’t have enough funds in their account to cover it.
Either the amount of the check is less than $200 or it is a government check.
Obviously, you’d rather avoid fees.
Since you are a customer, the bank should not charge you to cash the check. You may not know right away if the check is going to bounce, though, because it may take several days to clear. Generally speaking, if everything checks up, you can withdraw up to $200 from a bank instantly or within one business day.1 If the check turns out to have bounced, though, you’ll have to pay it back plus a fee (which might total $35).56
Withdrawing Money from an Automatic Teller Machine
It’s not quite as easy as going to a bank, but ATMs may be used to cash checks. However, not all ATMs provide this feature; some let you deposit the check only, and others don’t accept deposits of any kind.
Bring your check, your bank card, and a pen (to endorse the check), and then follow the on-screen instructions at an ATM that supports this feature. Before an ATM will give you cash, it may be necessary to have that much money available in your account.
Shops and Check Cashing Services
You can try to get cash from a store if your bank is closed, won’t cash the check, won’t give you more than $200 in cash, or if you don’t have a bank account. Small personal checks may be cashed as well, but government or salary checks have a better chance.
Many grocery stores, convenience stores, and big-box retailers will cash checks for a little fee, typically under $5. Personal checks are typically limited to $50 or $100; however, Kmart is unusual in that it will cash checks of up to $500, with no cost in some jurisdictions and a $1 fee in others. Money orders, payroll checks, and government checks are the main payment methods accepted by shops.7
However, if you’re a regular client and you have a little personal check (less than $25), you can always ask if they can make an exception. However, you should anticipate rejection.
Note
Personal checks can also be cashed at check-cashing outlets, which are typically open later than banks and accept larger checks than shops. However, check cashing services typically demand a sizable fee in addition to a percentage of the check’s total value.8
Postdated check cashing
If you get a check that was written for the following week, you may usually disregard the fact that it is postdated.9 However, it’s likely the check was postdated because the funds weren’t readily available at the time it was written. Whether or not you know the check’s author well will factor into your decision on whether or not to cash it.
Questions and Answers (FAQs)
Do you need a bank account to cash a check?
A checking account is not required to cash a check. The bank of the check’s creator is your best bet, however you can also cash it at a store or a check-cashing business. Typically, there will be some sort of cost associated with using this service.
With what time frame must a check be cashed?
Banks are not obligated to honor cheques that are more than six months old.10 If you wait too long to cash the check, the check’s author might have closed their account or used the money they had set aside for your payment. The sooner a check is deposited or cashed, the better.
If a check is not in my name, how can you get it cashed?
You need the original payee to sign over the check to you before you can cash it. In the space provided for endorsements on the back of the check, they can write “Pay to the order of [Your First and Last Name]” and sign their name. When you cash the check, you’ll need to sign the endorsement section. To cash a check at some financial institutions, you may need to bring the check’s original payee.
