Did you know that if you have received a payment by cheque you don’t need to put it into a bank account to access the funds? This is, of course, the easiest way bit you are other solutions. If you would like to know more about how you can cash a cheque then read on, we’ve put together a great list of everything that you need to know about cashing cheques.
1. Know where you can cash a cheque
You will need to do your research on where you will be able to cash a cheque. If you have a bank account or credit union account then you will be able to walk into a branch to deposit the funds. Use an ATM to put the money into your account or even use the financial institution’s mobile app to deposit the money using the camera on your phone.
If you are looking to cash the cheque at another location, you will need to endorse the cheque by signing the back of it and bring some ID with you. Make sure to call ahead to make sure that they can accept the cheque and the form of ID that you are planning to bring with you.
2. Understand the fees
Another advantage to using a bank or credit union is that you will be able to deposit the cheque for free. If you are cashing the cheque elsewhere, you need to make sure that you fully understand exactly how much it will cost. This is often a flat fee or a percentage of the amount that is going to be given to you in cash. You should make sure that you have an exact number before you move ahead with cashing the cheque to avoid any disappointment. You don’t want any unpleasant surprises.
3. Know where to avoid cashing a cheque
For people that don’t have a bank account, you should make sure that you do your research before cashing a cheque. You should avoid any payday lenders. These places will often charge a hefty fee for cashing a check. Payday lending stores, for example, charge up to 10% of the check value. It’s great that you’re doing your research now so that you won’t end up being stung by high fees.
4. Keep a copy of the cheque for your records
If you are cashing a check you should keep a record of it. This can go a long way to helping you when you need to file your taxes or prove income if the cheques are how you are paid by your employer. It is very important that you stay organized with all of your finances so that you will be able to keep track of your expenses. This will help with budgeting in the future.
5. Be wary of international currency fluctuations
If you are looking to cash a cheque in a currency that you are not too familiar with you should make sure that you understand exactly what you expect to receive. You will not be used to handling the foreign currency so you should get an idea beforehand about the denominations used and what amounts are useful when spending the cash. For example, you wouldn’t want all of your money to be in the highest denomination that is not accepted everywhere that you go.
6. Don’t spend money you don’t have
You should wait to spend any money that you have until after the cheque has been cashed. You don’t want to be caught short or in your overdraft should there be a delay in the cheque being processed.