Check deposit options when you don't have a bank account

You can deposit a check at the bank or credit union that issued it, at a check-cashing service, through a mobile app tied to a prepaid card, or at some retail locations like Walmart and grocery stores. The issuing bank — the one printed on the check itself — will always cash or deposit a check for you even if you have no account there, though you may need to show ID and pay a small fee. Check-cashing services and retailers offer the fastest option but charge higher fees, typically 1 to 3 percent of the check amount. Mobile deposit through a prepaid card account lets you photograph the check and deposit it remotely, though you'll need to open that account first.

The choice depends on how quickly you need the money, how much the fee matters to you, and what's actually near you. A check from your employer cashed at their bank takes minutes. A check from anyone else cashed at a check-cashing service takes minutes but costs more. A mobile deposit takes a day or two but costs nothing if you already have the app.

Key Takeaways

  • The bank that issued the check will cash it for you without an account, though you'll need a valid ID and may pay a small fee.
  • Check-cashing services and retailers like Walmart charge 1 to 3 percent of the check amount but give you cash or a card load in minutes.
  • Prepaid card accounts with mobile deposit let you photograph a check and deposit it for free, but the money takes one to two business days to arrive.
  • Some credit unions and community banks offer second-chance checking accounts with low or no fees, which can be cheaper than repeated check-cashing fees.

Cashing a check at the issuing bank

The bank printed on the check is legally required to honor it. Walk into any branch with your ID and the check, and they will cash it or deposit it to an account you open on the spot. You don't need to be a customer. Some banks charge a small fee — typically $5 to $10 — for cashing a check from a non-customer, but many waive it.

This is the cheapest option if the issuing bank is near you. If you're cashing a paycheck, your employer's bank will almost always do it for free. If the check is from a small business or individual, call the bank first to confirm they'll cash it without an account, since policies vary.

The downside is that you need to find a branch during business hours. If the bank is far away or closed when you need the money, this won't work.

Check-cashing services and retail locations

Check-cashing stores, payday lenders, and retailers like Walmart, Target, and many grocery stores will cash checks on the spot for a fee. The fee is usually 1 to 3 percent of the check amount — so a $100 check costs $1 to $3 to cash. Some places charge a flat fee instead, like $5 per check regardless of size.

You'll need a valid ID and sometimes a second form of ID. The process takes 10 to 15 minutes. You get cash immediately or the money loaded onto a prepaid card they offer. This is the fastest option when you need money right now and the issuing bank is not available.

The trade-off is cost. If you cash checks this way regularly, the fees add up quickly. A $500 paycheck cashed at 2 percent costs $10. Over a year, if you cash two checks a month, you're paying $240 in fees alone.

Mobile deposit through a prepaid card or money app

Many prepaid card companies and money transfer apps let you photograph the front and back of a check and deposit it without visiting a location. The money usually arrives in one to two business days. Services like NetSpend, Chime, and Green Dot offer this feature, and you don't pay a fee to deposit.

To use mobile deposit, you need to open an account with the service first, which takes 10 to 15 minutes online. You'll need a valid ID and a phone with a camera. Once the account is open, you can deposit checks anytime, anywhere — at home, at work, anywhere you have the app.

The downside is the wait. If you need cash today, mobile deposit won't work. You also need to make sure the check clears before you spend the money, which can take two to three business days in total.

Opening a low-cost bank or credit union account

If you cash checks regularly, opening a checking account may cost less than paying check-cashing fees. Many credit unions and community banks offer second-chance checking accounts designed for people with no banking history or a damaged credit report. These accounts often have no monthly fee, no minimum balance, and no overdraft fees.

Once you have an account, you can deposit checks in person, through mobile deposit, or at an ATM. You get a debit card to spend the money. The setup takes 20 to 30 minutes in a branch or online, and you'll need an ID and proof of address (a utility bill or lease).

The cost is usually zero after the initial account opening. Compare this to check-cashing: if you cash two $500 checks a month at 2 percent, you pay $240 a year. A free checking account pays for itself immediately.

What to do if the check is damaged or unclear

A check with a torn corner, water damage, or faded writing may be rejected by a check-cashing service or mobile deposit app. If the routing number, account number, or amount is illegible, the check cannot be processed.

Contact the person or business that issued the check and ask for a replacement. Explain what's wrong with the original. Most will reissue it within a few business days at no cost. Do not attempt to write over or repair the check yourself — this can make it look altered and get it rejected or flagged.

If the check is old — more than six months — banks may refuse it. Ask the issuer for a new one with a current date.

Avoiding check fraud and scams

Before you deposit or cash any check, verify it's real. Look for these red flags: the routing number at the bottom left doesn't match the bank name, the amount in words doesn't match the amount in numbers, the signature looks forged or is missing, or the check is printed on thin or unusual paper.

If someone offers to send you a check for more than the amount owed and asks you to wire back the difference, it's a scam. Legitimate businesses do not overpay and ask for refunds. If you deposit a fraudulent check, you are responsible for the full amount once it's discovered — even if you already spent the money.

When using mobile deposit, photograph both sides clearly and in good light. Do not deposit the same check twice. Once the bank confirms receipt, destroy the physical check by shredding or tearing it up.

Frequently Asked Questions

Can I deposit a check made out to someone else?

No. A check must be deposited or cashed by the person whose name is on it. If someone gives you a check with their name on it, they need to sign the back and be present when you cash it, or they need to sign it over to you in writing (called a third-party check). Many banks and check-cashing services refuse third-party checks because of fraud risk.

What if the check is post-dated?

A post-dated check has a future date on it. Banks and check-cashing services may refuse to cash it before that date, though some will. Call ahead and ask. If they do cash it early, the money is yours immediately. If they refuse, you'll need to wait until the date on the check arrives.

How long does a check take to clear?

If you cash a check at the issuing bank, it clears immediately. If you deposit it at a different bank or through mobile deposit, it usually takes one to three business days. Weekends and holidays don't count as business days. Large checks or checks from out-of-state banks may take longer.

What happens if I deposit a check and don't have enough money to cover an overdraft?

If you deposit a check into an account and spend the money before it clears, and the check bounces, your bank may charge you an overdraft fee. This is why it's important to wait for the check to clear before spending. If you don't have an account, this isn't a concern — you get cash or a card load, and the risk is on the check-cashing service.

Is it cheaper to open a bank account or keep using check-cashing services?

If you cash more than one or two checks a month, a free checking account is cheaper. At 2 percent per check, two $500 checks a month costs $240 a year. A free account costs nothing. Even accounts with a $5 monthly fee ($60 a year) beat regular check-cashing if you deposit more than three checks a month.