Once you go through a personal injury lawsuit, getting your settlement check is a separate process. When you finally get the check, it signifies the end of what has likely been a very challenging time for you.
Cashing a settlement check is the next step, though you may be wondering the best way to do so. Armada Law is a personal injury law firm in Greenville dedicated to helping injured victims fight for justice and recover the settlements they deserve. In this blog post, we highlight how to cash your settlement check and discuss the various settlement check cashing locations you can use to access your funds.
Where to Cash Settlement Checks: Settlement Check Cashing Locations
If you have your settlement check, read on to find out the best way to cash a settlement check.
Go to Your Bank
By far, the best place to cash a settlement check is at your bank. If you have a bank account at a bank or credit union, simply go to your own financial institution with the check. There likely won’t be any additional fees, though there may be a short hold to ensure the funds clear. Ideally, you should have a bank account created prior to receiving this check, which makes it easier to deposit or even cash out for the full amount. Other factors when using your bank include:
- Cost: It is usually free to put the money into your own account.
- Safety: The money is safe right away. Banks have insurance, so your money is protected (up to a limit).
- Waiting Time: If the check is very large, the bank might make you wait a few days to use all the money. They do this to be sure the check is good. You can ask your banker if they can let you use the money sooner.
Go to the Issuing Bank
If you don’t have your own bank account, you can try to cash your settlement check at the issuing bank. If the issuing bank isn’t local, other banks may be able to provide these services for non-customers but you should confirm that first.
You’ll want to find out what types of identification they require, and in most cases, this will mean bringing your driver’s license and passport. You may also need to bring the paperwork from your settlement. Once the bank verifies the authenticity of your settlement check, it can release the funds to you, though it will likely impose a fee either as a flat fee or percentage of the funds on your check. Additional factors to going to issuing bank include:
- Fast Money: This bank can look right away and see that the money is real and ready. They can often give you the cash on the spot.
- Fees: They might charge you a small fee because you are not their customer. Call ahead to ask what their fee is.
- ID Check: You must bring two forms of ID, like your driver’s license and maybe a student ID or passport.
Go to Check Cashing Store or Other Retail Check Cashing Location
These places give you fast cash, but they are often expensive or have strict rules.
A large number of personal injury victims are often in desperate need of settlement funds right away. If you don’t have a checking account and need your money now, you can visit a check cashing store.
Check cashing stores are convenient, though they often have very high fees for their services. Additionally, they may only cash checks up to a certain amount, so if your settlement check is large, this may not be the best option.
Similarly, you may be able to cash your settlement check at a grocery store, Walmart, big box retailers or other similar establishments. However, just like check cashing stores, they may impose large fees for the service and may be unable to assist if the check is for a large sum of money.
Other Options for Cashing a Settlement Check
The best way to cash your settlement check is by going through your own bank. Depositing a settlement check into your own account is the most secure method. You may be able to use a direct deposit from your attorney as well, but this will depend on your lawyer.
Since your settlement check will first be put into a trust or escrow account by your attorney and used to pay your liens, debts, and legal fees, your attorney will need to issue you the remainder. They will most commonly write a check for the remaining balance of your compensation award. Some may be able to deposit it into your bank account but you must have an account set up prior to the issuance of your check.
What Happens Before You Get the Check
First, it is important to know that the check you get is usually your final share of the money.
- The Big Check: The insurance company writes a big check to you and your lawyer.
- The Lawyer’s Bank: Your lawyer puts this big check into a special bank account just for clients. They wait until the money is officially clear (this can take a week or two).
- Paying Bills: From that money, your lawyer takes out their fee, pays for case costs (like court fees), and pays any hospital bills that were part of the agreement.
- Your Check: The check you receive from your lawyer is the money that is left over, just for you. This is the check you need to cash.
Understanding Settlement Checks
Settlement checks are how you get your compensation award from a personal injury case. The intent of a settlement is to make your life as whole again as possible after someone else’s negligence has caused you to suffer injuries and financial losses.
Settlements are awarded either through negotiations or courtroom verdicts in personal injury cases. Car accidents, truck accidents, and other motor vehicle accidents are among the common types of personal injury cases that, when successful, will conclude with the issuance of a settlement check from the at-fault party or their insurance company.
While it is possible to negotiate for a fair settlement on your own, if you have serious or life-altering injuries, it is always best to hire a personal injury lawyer. With an attorney, you will have someone advocating for your best interests and working to ensure that the full amount of your economic damages and non-economic damages are provided in a settlement.
Your lawyer will also make sure that the check is received and that all liens, attorney’s fees, and medical expenses are paid off first before providing you with the remaining settlement funds. Once you have it in hand, cashing a settlement check can be done at a variety of locations.
Factors to Consider When Cashing a Settlement Check
Ultimately, the best way to cash a settlement check is what works best for you. You may be willing to pay high fees with alternative check cashing methods in exchange for getting the bulk of your cash immediately.
It’s worth considering investing your money to make it work for you in the longer term. Your attorney will likely recommend that you speak with a financial advisor to help you plan for your future and protect your finances. They will also explain any relevant tax implications to avoid surprises during tax time.
In the end, if you need the money now and your settlement is a smaller amount, it may be best to cash it in the most convenient way for you. You may also decide that you’ve waited a long time to get your settlement, so waiting a few more days to deposit it into your bank account may not matter.
How to Cash Your Settlement Check
When cashing a settlement check, you should first decide where you will bring it. The settlement check cashing locations discussed above should be able to help you with this process. Here are some additional help steps to cashing your check:
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Decide where you want to cash or deposit the check.
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Options include banks, credit unions, check-cashing stores, or retail locations.
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Sign (endorse) the back of your check where it says “endorse here.”
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Bring valid photo ID
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Usually two forms, such as a driver’s license, passport, or state ID.
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Decide ahead of time if you’ll cash or deposit the check.
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Depositing it into your bank account is usually the safest choice.
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You can also ask your attorney to deposit it directly for you.
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If you can’t deposit it, make sure to get receipts and proof of the transaction for your records.
Safety Tips for Cashing a Settlement Check
In the era of scams, you should be vigilant when you are cashing your settlement check. The first step is to verify that your check is authentic. When you work with a personal injury attorney, they will help you inspect the check to ensure that it is legitimate and valid.
They will also urge you to go to a reputable bank or credit union to deposit your settlement check. This is the best way to avoid scammers and fraud. If you must use a check cashing service to get immediate cash, make sure that it is a known institution. Do not let anyone else cash the check for you.
Additionally, when other people get wind of your financial windfall, they may try to manipulate you into giving them money. Always protect your financial assets and secure your funds. Your attorney can provide advice on what to do to ensure your money stays safe.
How Can I Use My Settlement Check?
Whether cashing a settlement check or depositing it into your bank, these funds are for you to use in any way that you wish. While the liens, medical debts, child support, and legal fees will be deducted from your settlement award before you are issued a settlement check from your attorney, you may still have other outstanding medical bills remaining. It’s a good idea to take care of those things first.
Set some of the money aside for your future medical care or use it to replace your lost wages if you are unable to work. Many personal injury victims will use their settlements to pay for monthly expenses and get out of debt.
You may want to take a portion of this money and invest it, especially if you’re receiving it as a lump sum rather than a structured settlement. At Armada Law, we will fight for your fair settlement and help you determine the best way to protect your compensation after you’ve received your award. Contact us today to schedule a free initial consultation to discuss your case.
Common Questions Clients Ask Us
How Long Does It Take to Get My Car Accident Settlement Check After I Sign the Papers?
After you sign the release papers, it usually takes about 4 to 8 weeks to get your final check. Here’s why it takes that long:
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Insurance Processing (1–2 weeks): The insurance company needs time to process the signed papers and mail the check.
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Bank Clearance (7–10 business days): Your law firm deposits the check into a special trust account. The bank holds large checks for several days to make sure the money clears.
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Final Payout (1–2 weeks): Your lawyer then pays any medical bills or case expenses before sending you your final check.
So while it may feel slow, these steps make sure your money is safe and properly handled.
Why Is My Settlement Check Made Out to Both Me and My Lawyer?
The check is made out to both you and your lawyer to keep your money safe and make sure everything is handled correctly.
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Security: This setup makes sure the check goes into your lawyer’s secure trust account, so the money can’t be lost or misused.
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Paying Liens: It allows your lawyer to pay any medical bills or insurance claims that must be settled before you get your money.
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Your Final Check: After all bills and fees are paid, your lawyer gives you a new check made out only to you for the rest of your settlement.
This process protects your funds and keeps everything legal and organized.
Where Should I Cash My Settlement Check to Avoid High Fees?
The best and cheapest place to cash or deposit your settlement check is at your own bank or credit union.
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Best Option: Deposit it into your account, this is usually free.
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Watch Out for Fees: If you go to the bank that issued the check and you’re not a customer, they might charge a $10–$20 fee.
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Avoid Check-Cashing Stores: These places can take 4% to 10% of your check. On a $50,000 check, that’s $2,000–$5,000 gone in fees.
In short, use your own bank to keep all your money.
Why Did My Bank Put a Hold on My Settlement Check?
Banks often place a temporary hold on large checks to make sure the money is real and available.
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Verification: The bank must confirm that the check is valid and that the funds have cleared from the other bank.
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Hold Time: Usually, banks release a small amount (around $225) right away and hold the rest for 5 to 10 business days.
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Speeding It Up: If you’ve been a long-time, trusted customer, ask your branch manager if they can remove or shorten the hold. Sometimes they can, but not always.
This hold protects both you and the bank from bounced checks or fraud.
What’s the Safest Way to Sign My Settlement Check?
To keep your settlement money safe, always be careful when signing your check.
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Sign at the Bank: Don’t sign the back until you’re standing at the teller’s window.
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Use a Restrictive Endorsement: If you have to sign early, write “For Deposit Only” and your account number above your signature.
This makes sure that no one else can cash your check if it gets lost or stolen, it can only go into your account.
Reach Armada Law 24/7 For Legal Advice
When you’re ready for skilled legal knowledge after an accident, choose Armada Law. We’re always available with a free case review and a trusted personal injury attorney with experienced legal advice regarding your South Carolina accident claim.
Plus, there are no up front cost, you pay us when we win. So, let’s begin today!
