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Cost of Using a Check Casher

Picture of using a debit card at an ATM

Banks may not be as convenient as check cashing stores, so why should you use them?

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
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This is so true :D