Receiving your settlement check after a long legal battle is a moment of relief and satisfaction. After the stress of litigation, you finally have the compensation to help you meet your needs and get on with your life.
However, accessing that money can raise new questions: Where can I cash a settlement check? Are there any requirements? Is there a waiting period before I can access my money?
Today, we will cover what you should know about cashing a settlement check. We’ll explain how to cash a settlement check and answer common questions about the process.
Where Can I Cash a Settlement Check?
You have several different options when preparing to cash your check.
Banks or Credit Unions
If you have a bank account, your bank can deposit or cash the check for you. Since you have an account with them, they typically won’t charge you a fee for the service.
You can also go to the issuing bank or the bank of the person who wrote the check. You can find the issuing bank’s name on the check. However, you may have to pay a fee to cash if you don’t have an account with them.
Some banks will charge a flat fee for a non-account holder to cash a check. Others may charge a percentage of the total amount.
Check-Cashing Services
You can also go to a check-cashing service to access your funds. These places may require more personal documentation than a bank to cash a check, such as proof of address or extra ID. Typically, you must pay a percentage of the check amount to the service to receive your cash.
Retail Stores
Some grocery and big-box stores also cash settlement checks for a fee. Whether it’s a flat fee or a percentage of the total amount depends on the store and its policies. Be aware: many grocery stores refuse to cash checks over a certain amount, e.g., $5,000.
What Do I Need When Cashing a Settlement Check?
To cash any check typically requires some form of government ID. However, since settlement checks are often large, some places may require additional documentation, including:
- Two forms of government ID,
- Social Security number,
- Proof of address,
- Copy of settlement agreement, or
- Attorney contact information.
To be safe, call and ask the institution about the required documents beforehand.
How to Cash a Settlement Check
You can cash your settlement check as soon as you receive it in the mail or from your lawyer. Cashing a settlement check involves the following steps:
- Verify the amount and all other information is correct,
- Decide where to cash the check,
- Collect the required documents,
- Take it to your chosen service, and
- Sign the back of the check and submit it to the service of choice.
After you deposit or receive your funds, it’s a good idea to keep the receipt documenting the transaction.
Restrictions for Depositing a Large Settlement Check
Since settlement checks often involve large amounts of money, you may have to follow specific rules to access your funds.
For example, some banks will allow you to deposit big checks through their mobile apps. Some will not allow this if the check is over a certain amount. This means you’ll have to visit a physical location to get your money.
Also, your funds might not be immediately available after depositing a large settlement check. It can take a few days for your account to clear after you deposit it. When the amount is large, the delay can be even longer.
Need Support While Waiting for Your Settlement?
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