How to cash a cheque without a bank account

Whether it’s a salary cheque, a personal cheque or a government cheque, it’s possible to cash a cheque without having a bank account. This article explores seven ways to cash a cheque without a bank account.

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

Ways to cash a cheque without a bank account

The proportion of British adults without a bank account continues to steadily drop — yet approximately 2% of adults lacked a bank account as of May 2022, according to the Financial Conduct Authority (FCA).¹

There are different ways to cash a cheque without a bank account. This article explores the following methods:

• Cash a cheque at the issuing bank
• Cash a cheque at a retailer
• Cash a cheque at a post office
• Cash a cheque using an online provider
• Deposit a cheque onto a prepaid debit card
• Cash a cheque at a cheque-cashing store
• Endorse a cheque to a third party

Cash a cheque at the issuing bank

Some banks, credit unions, and building societies allow non-customers to cash cheques that were issued by them. They may charge either a flat fee or a percentage of the cheque amount. Fees and other costs may apply and may vary depending on the issuing bank.

The process may look something like this:

1. Locate and go to a branch of the bank that issued the cheque.
2. Endorse the back of the cheque by signing it.
3. Present identification and the cheque to the bank teller. Confirm the cheque details.
4. Once the cheque is verified, the teller can process the transaction and provide the cash equivalent of the cheque.
5. Keep the receipt as proof of the transaction.

Cash a cheque at a retailer

Some retail chains, large supermarkets, and corner shops offer cheque-cashing services for a fee.

The process is similar to cashing a cheque at the issuing bank. Before receiving the funds, individuals may be charged a fee for processing and cashing the cheque.

These types of retailers may also limit how much someone can cash for non-personal cheques, such as government cheques.

Cash a cheque at a post office

Many post office branches allow customers to cash cheques without a bank account. A valid form of ID with a photo is usually required, as well as the physical cheque that is to be cashed out.

However, a post office may limit this service to certain types of non-personal cheques, such as government cheques.

Cash a cheque using an online service

Some financial services provide the ability to cash a cheque online.

This is typically how it works:

• Set up an account with the service provider. The provider will likely request various personal information (name, email, address, etc.), but the steps may vary.
• Once the account is set up, take a photo of the front and back of the cheque using the provider's mobile app.
• Once the app verifies the cheque's authenticity, it will deposit the funds directly into the account with the provider. The funds can then be transferred to another account if desired. Note that it can take several days or longer for a cheque to clear, depending on the online account provider and the cheque’s issuing bank.
• Some providers may charge fees or other costs for account setup or cashing of cheques. Review all terms to stay on top of any potential costs.

Deposit a cheque onto a prepaid debit card

Another way is to deposit a cheque onto a prepaid debit card, which functions similarly to a bank account debit card but doesn’t require a bank account to be opened.

Once a prepaid debit card is activated, a cheque can be deposited using the card provider’s mobile app or website. The card can then be used to make purchases or withdraw cash. However, not all prepaid debit card providers may provide this service, so it is crucial to confirm whether someone can deposit a cheque on the card before taking it out.

Cash a cheque at a cheque-cashing store

Cheque-cashing stores specialise in cashing cheques. However, it’s important to note that they often charge relatively high fees.

These fees can either be a percentage of the cheque amount or a flat amount. Fees may vary depending on the cheque-cashing store or the amount of the cheque.

Endorse a cheque to a third party

Signing a cheque over to a trusted third party, such as a friend or family member, allows them to deposit the funds into their own bank account. This process is also known as endorsing a cheque to a third party.

When endorsing a cheque to a third party, the individual will be relinquishing control of the funds, so it’s important to sign a cheque over to someone trusted who will transfer the funds back to them.

How to cash a large cheque without a bank account

Cashing a large cheque can be more challenging without a bank account, as some retailers have limits on the maximum amount someone can cash.

These are some options for people who may need to cash a large cheque:

• Issuing banks: Keep in mind that not all banks, credit unions, and building societies offer this service, so it's always best to verify whether non-customers can cash cheques. There may also be fees charged for non-customers attempting to cash a cheque.
• Cheque-cashing stores: Note that these stores often charge high fees, which may eat into the cheque’s value.
• Third-party cheques: Signing a cheque to a third party is another option available, though those doing so should ensure they endorse the cheque to a trusted third party. The third party should have a bank that allows for the amount of the cheque to be cashed.

How to cash a government cheque without a bank account

Cashing a government cheque without a bank account is possible with some of the solutions outlined above, including retailers, cheque-cashing stores, and online providers — as long as the cheque doesn’t exceed the accepted amount limit.

Potential costs when cashing a cheque without a bank account

Depending on where someone decides to cash a cheque, there may be potential fees and additional costs involved. Some methods may include:

• Cheque-cashing fees
• Fees to expedite the funds immediately
• Prepaid card fees

Be sure to review any terms and fees associated when determining which method to use.