By: Armada Law LLC December 23, 2024

Where Can I Cash My Settlement Check? Options and Tips

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.

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.

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.

Visit a Check Cashing Store or Other Retail Check Cashing Location

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, 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.

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.

Cashing a Settlement Check: How to Do It

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.

You’ll need to endorse your check by signing your name on the back of the check where indicated. You’ll also need to bring a photo ID, generally with two different types of valid identification such as your passport, driver’s license, or state ID card.

Will you be cashing the check or simply depositing it? That’s a question you’ll need to decide on before you visit any bank, credit union, check cashing store, or retail establishment. It is safest to deposit your settlement check directly into your bank account or see about having your attorney directly deposit the funds there. If you can’t deposit it, make sure that you get receipts and proof of the transaction in case there are any issues.

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.