You can cash a settlement check at a check-cashing service, your bank or credit union, or sometimes at the place that issued it
A settlement check is money owed to you from a legal case, insurance claim, or lawsuit. If you do not have a bank account, you have several ways to turn that check into cash. The fastest and cheapest route depends on where the check came from, how large it is, and what services are near you.
The simplest option is often to cash it at the bank or credit union that issued the check — that is, the financial institution whose name appears in the bottom left corner. Many will cash their own checks for free, even if you are not a customer. A check-cashing service is another option, though it charges a fee. Some settlement administrators and law firms will also cash checks directly at their offices.
Key Takeaways
- The bank or credit union that issued the check will often cash it for free if you bring a valid ID, even without an account.
- Check-cashing services charge a percentage of the check amount, usually between 1 and 5 percent, so the larger the check, the more you pay.
- Some settlement administrators and law offices will cash settlement checks directly at their location, which costs nothing.
- Bring a valid government-issued ID to any location where you cash the check, and ask about fees before you hand over the check.
Cashing at the issuing bank or credit union
The fastest and cheapest option is usually the bank or credit union whose name appears at the bottom left of the check. Call that institution first and ask whether they will cash a check for a non-customer. Most will, at no charge.
Bring your valid government-issued ID — a driver's license, passport, or state ID card. Some banks may ask a few questions about where the check came from, but they are mainly checking that you are the person named on the check. Go to a branch during business hours, hand the check and your ID to a teller, and they will give you cash.
If the check is very large — several thousand dollars or more — the bank may ask you to wait while they verify the funds. This usually takes a few minutes. Some banks have daily limits on how much cash they will hand out at once, so if your check is extremely large, ask about that when you call.
Using a check-cashing service
A check-cashing service is a business that cashes checks for a fee. You can find them in most neighborhoods — they are often near grocery stores, laundromats, or bus stations. Some are standalone shops; others operate inside grocery stores or pharmacies.
The fee is usually a percentage of the check amount, ranging from 1 to 5 percent depending on the service and the size of the check. On a $1,000 check, that could be $10 to $50. Bring your valid ID and the check, and the service will give you cash on the spot. The process usually takes less than 10 minutes.
Before you hand over the check, ask what the fee is. Some services charge a flat fee instead of a percentage, so it is worth asking. If one service seems expensive, you can walk out and try another.
Cashing directly at the settlement administrator or law firm
If your settlement came from a lawsuit or insurance claim, the organization handling the settlement — called the settlement administrator — may cash the check at their office. Some law firms will do this as well. Call the phone number on the check or your settlement paperwork and ask whether they offer this service.
If they do, you will need to go to their office in person with a valid ID. There is usually no fee. This is often the fastest option if the office is near you, because you avoid the bank or check-cashing service entirely.
What to bring and what to expect
You will need a valid government-issued ID. This can be a driver's license, state ID card, passport, or military ID. Some places also accept a tribal ID or a foreign passport. Call ahead if you are unsure whether your ID will work.
Bring the check itself — do not sign the back until you are at the location where you are cashing it. Some places will ask you to sign it in front of them. Have the check and your ID ready when you arrive.
If the check is made out to more than one person, all the people named on the check must be present with their IDs. If the check is made out to a business or organization, bring documentation showing you are authorized to cash it on their behalf — this might be a letter from the business owner or a power of attorney document.
Fees and what they cost you
Cashing at the issuing bank or credit union costs nothing. Cashing at a settlement administrator or law firm costs nothing. Check-cashing services charge a fee, usually 1 to 5 percent of the check amount.
The larger your check, the more sense it makes to go to the bank instead of a check-cashing service. On a $500 check, a 3 percent fee is $15. On a $5,000 check, it is $150. That difference is worth a trip to the bank.
Some check-cashing services offer lower fees if you are a regular customer, so if you use them often, ask whether they have a loyalty program or a lower rate for repeat visits.
If the check is damaged or has problems
If the check is torn, stained, or hard to read, the bank or check-cashing service may refuse it. If this happens, contact the organization that issued the check — the settlement administrator, law firm, or insurance company — and ask them to issue a replacement check.
If the check is post-dated — meaning it has a date in the future — you cannot cash it until that date arrives. Wait until the date on the check, then take it to cash it.
If the check has been sitting for a long time, check whether it has expired. Most checks are good for six months from the date written on them. If it is older than that, contact the issuer and ask for a replacement.
Frequently Asked Questions
Do I need a bank account to cash a settlement check?
No. You can cash it at the bank that issued it, a check-cashing service, or sometimes at the settlement administrator's office. You do not need to open an account.
Will the bank cash my check if I am not a customer?
Most banks will cash checks they issued, even for non-customers, at no charge. Call the bank first to confirm, because policies vary. Bring a valid ID.
What is the cheapest way to cash a settlement check?
The issuing bank or the settlement administrator's office will cash it for free. A check-cashing service charges 1 to 5 percent. If you have to choose between them, the bank is always cheaper.
Can someone else cash my check for me?
Not usually. Most places require the person named on the check to be present with a valid ID. If you cannot go in person, contact the issuer and ask whether they can mail the money to you or deposit it into an account you designate.
What if I lost the check?
Contact the organization that issued it — the settlement administrator, law firm, or insurance company — and report it lost. They can issue a replacement check or, in some cases, stop payment on the original and reissue it.