How to Cash Paychecks

2007-07-24 08:31:47

( Financial )



Cash Paychecks Through the Bank

If you receive your salary in the form of a paycheck, you have several options on how to cash it and get your money.

Since the check is drawn on your employer's account, you just need to go to that bank to turn the check into cash. All you need to do is show the bank teller a valid identification document such as your license or employee ID card. However, this option may not be convenient if your paychecks are drawn on a bank that is located far from your city or in another state. Moreover, you have to cash paychecks within banking hours only, and you must do it in person.

Another way to cash paychecks through banks is to deposit them directly into your own savings or money market checking account. However, you will have to wait several days for the paycheck to go through a check clearing process before you can get the proceeds of the paycheck. Furthermore, you have to maintain a minimum balance on your bank account, or the bank will charge you a maintenance fee.

Other Ways to Cash Paychecks

Some commercial establishments such as supermarkets and discount stores may be willing to cash paychecks of employees. There are also some establishments that engage in the business of cashing payroll checks. These establishments will charge you a fee for cashing your paycheck. But they are quite useful in cases where you have no existing bank account, or if you really need money in a hurry. Most of these establishments are also conveniently available during after-work hours and weekends.

You can easily find check cashing outlets in your local yellow pages directory or through online referral sites.

Tips and Advice Before You Cash Paychecks

Now that you know all your options, weigh them out carefully before choosing one. The safest and surest way of getting your money is through the banks. But if this is not physically possible, then look for a reputable check cashing establishment.

Be prudent in shopping around for the most reasonable check cashing fee. At the time of cashing your paycheck, ask the establishment for an itemized receipt which shows the breakdown of the cashed amount and the fee. Make sure that the fee charged to you is the same one that the store has posted or advertised.

You can also discuss with your employer about other arrangements regarding your payroll, such as opening a direct deposit bank account which can be exempt from minimum balance requirement, or by just paying you in cash.


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