Using check cashing stores and money orders may seem more convenient than having a checking account at a bank. But they will cost you more than a checking account—around $800 a year more!
Check cashing stores charge you up to 5 percent of the check amount. Because a money order can cost as much as $3 per order, your costs could really add up.
If you cash a $250 check and pay 5 percent, you will give away $12.50. To cash two paychecks a month, you may pay more than five times as much in fees at a check cashing store than you would at a bank or credit union with a regular checking account.
Watch it add up!
|1 week check of $250||costs you $12.50|
|1 month of checks (four $250 checks)||costs you $50.00|
|12 months of checks (48 $250 checks)||costs you $600.00|