Banks that will cash a check without an account

Fortunately, when you receive your check, you won't be stuck with a worthless piece of paper. There are several ways you can turn it into cash that you can actually use, but some of them carry a fee. Here are a few you can look into.

1. Visit the issuing bank

This won't help with your stimulus check, but you can always visit the issuing bank, assuming there's a branch near you. If you need to cash a paycheck or a check you received from someone else, many branches will readily cash it, even if you don't bank with them. This is because they can verify that the account the check is drawn from has the necessary funds. But some banks don't allow this and some may charge a fee for doing so. The bank may ask for a government-issued ID before it cashes the check to verify that you are the person it's addressed to.

Most checks should list the issuing bank, but if you don't see it, you can always try looking the bank up by its routing number online. This is the first number written on the bottom of the check. Once you know the bank, you can find the branch nearest you. If it's an online bank, you may be out of luck as not all of them have branches.

2. Go to certain retailers

Some big box and grocery store chains enable you to cash your checks, including payroll checks and government checks, at their stores. There's a small fee and you can only cash up to a certain amount, which varies by store. But it's usually a few thousand dollars, so unless you need to cash a five-figure sum, you should be fine.

Do some research online or inquire at the store to see if cashing checks is an option, and if so, what the store charges for doing so. You can compare these to the cost of cashing a check at the issuing bank or at a payday lender, discussed below, but retailers usually offer a pretty fair price.

3. Try a payday lender

Payday lenders are used to taking people's checks and doling out cash without asking too many questions and they'll most likely cash your check for you if you take it there. But this is unlikely to be your most affordable option.

Payday lenders are notorious for charging high fees and they're no different when it comes to cashing checks. You might walk away with less cash than you would if you went to a retailer or the issuing bank, so use this as a last resort.

4. Consider a prepaid card account

Some banks enable you to cash your checks at their ATMs and load the money onto a prepaid debit card that you can use to make purchases. This is an option worth considering if you don't want to worry about waiting in line at a bank branch or a retailer every time you need to cash a check.

But like the other options listed here, it's not without fees. These accounts usually carry a monthly service fee and that could eat into your profits even more than a per-check fee if you're not getting checks that often.

5. Endorse it to a friend

If you have a friend or family member that has a bank account, you could endorse the check over to them by writing on the back of it that you would like the money deposited into that person's account. Then, your friend can deposit the funds and give you your cash.

This option might get you out of paying a fee, but you're putting a lot of faith in the person you're handing the check over to. Once the money's in their account, it's mostly on the honor system for them to give your money back to you. You willfully signed the check over to them, so banks aren't going to be much help if your friend doesn't pass the money on to you. 

At least one of these options should appeal to you, but if they all sound too complicated, consider opening a free checking account with a nearby branch. That way you won't have to jump through as many hoops the next time you need to cash a check.

For most American consumers, cashing a check is simple -- they simply deposit it at their bank's ATM or through a teller. But according to a 2017 survey from the Federal Deposit Insurance Corporation, approximately 25 percent of U.S. households either don't have bank accounts or often rely on alternative channels for financial services, such as check-cashing or payday lending. If you fall into this category and you're wondering where to cash a check, fortunately there are some affordable options.

[Read: 5 Banking Blunders You Don't Want to Make.]

Here are some options for cashing a check if you don't have a bank account:

-- Go to the check-issuing bank.

-- Visit a retailer.

-- Try a payday lending store.

-- Pick up a payroll debit card.

-- Consider a prepaid card account.

-- Open a checkless overdraft-free debit card account.

-- Shop around.

Go to the Check-Issuing Bank

A bank will only cash a check for a non-customer if a check is issued by that specific bank. Even then, the non-customer could face a check-cashing fee, which varies from bank to bank. For instance, TD Bank charges $7 whenever a non-customer wants to cash a TD Bank check. Meanwhile, Citibank doesn't impose a fee when a non-customer wants to cash a Citibank check under $5,000. And some banks will impose a percentage. For instance, Fifth Third Bank will charge 1 percent of the check amount (with a $4 minimum and a $25 maximum).

More often than not, a non-customer will be persuaded to open an account with the bank to avoid paying the fee.

Visit a Retailer

Major retailers, such as Walmart and some supermarket chains, offer check-cashing services, which often cost less than those available at check-cashing stores and banks. "My advice for cashing a check when you don't have a bank is to go to Walmart. Their system is simple. You'll pay up to $4 for all printed checks up to $1,000 and up to $8 for all printed checks between $1,000.01 and $5,000," says J.R. Duren, a personal finance analyst and senior editor at the consumer reviews site HighYa.com. "The fees are very reasonable for any check amount and much better than check-cashers who may charge a percentage plus a fee," he adds.

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Try a Payday Lending Store

Payday lending stores generally offer check-cashing services, and while using a check-cashing service at a payday lending store is better than taking out a payday loan, it may be most advantageous to cash a check elsewhere.

It's a tough predicament to find yourself in, explains Adam Marlowe, principal experience officer at Georgia's Own Credit Union, a credit union in Atlanta. "On one hand, sometimes check-cashing facilities are the easiest to receive services, but use caution because they charge a significant fee for their risk of cashing the check," he says.

While some check cashers may impose a fee equivalent to a percentage of the check value, others may charge a flat fee in addition to a percentage fee. Also, keep in mind that for large checks, these check-cashing facilities can be expensive.

Pick Up a Payroll Debit Card

If you're cashing a payroll check, Marlowe suggests checking with your employer, as many offer a type of debit card in which employees can easily load their payroll directly to the reusable card.

For instance, Walmart, Walgreens and Taco Bell offer payroll debit cards. However, there are some caveats to consider. For example, some may have hidden fees, some may impose overdraft fees and others may charge you for transferring money to another account, using an ATM or even an inactivity fee for not using the card frequently enough.

[Read: How to Switch Banks: A Step-by-Step Guide.]

Consider a Prepaid Card Account

As financial institutions and other companies find that a large portion of the American population is unbanked or underbanked, they have offered prepaid card accounts to cater to this consumer segment.

For example, Chase offers a prepaid card that lets you deposit checks at any Chase ATM for free, but the card has a $4.95 monthly service fee.

A company called Ingo Money works with a long list of prepaid cards to provide mobile check deposit for these card accounts. With the Ingo Money app, you can use your smartphone to take pictures of checks to deposit them into a prepaid account. There is a 1 percent to 4 percent fee for this service, depending on the check type (2 percent is standard) and a minimum fee of $5 per transaction. However, users will not pay a fee if they choose to wait 10 days for the funds to be deposited.

Open a Checkless Overdraft-Free Debit Card Account

Adam Rust, the managing director of WiseWage, a Durham, North Carolina-based nonprofit that enrolls unbanked workers into safe and affordable FDIC-insured bank accounts, highlights checkless overfraft-free debit card accounts as an affordable option. Rust has been working on issues related to unbanked consumers for almost a decade. "For the individuals who cannot get a bank account, my piece of advice would be to look again," Rust says.

He says that just about anybody -- even if you've been blacklisted by banks in the past -- should be able to get a checkless overdraft-free debit card account. Some account options include KeyBank's Hassle-Free Account and Citibank's Access Account. "Not only is it the case that anyone will qualify for one of these accounts, but they usually have the ability to deposit a check with your smartphone," Rust says.

What's the catch? For certain accounts, you may have to pay a monthly maintenance fee, plus you won't be able to write checks. If you can avoid the check-cashing stores, you should, Rust says. "It costs too much money to convert a paper check into cash. Indeed, they may pay more to convert cash to digital value later," he says. "Along the way, they'll be spending a lot of time to manage their money."

[Read: 6 Predictions for Banking in 2019.]

Shop Around

Whatever you decide, as with every consumer spending decision, it is best to shop around to net the best price. If you frequently use alternative methods of cashing checks, you should research locations nearby for the cheapest fees, so you'll know where to go whenever you're in need of check-cashing.

Marlowe also suggests inquiring about options available with a local credit union. "Many offer free accounts as well as second chance accounts for consumers with challenging credit histories," he says.