Here’s the fees a MoneyGram check-cashing place near me will charge you to cash your checks:
$25 – $1
$50 – $1
$75 – $1.31
$200 – $3.50
$500 – $8.75
$1000 – $17.50
$2000 – $35
That’s about a 1-4% fee. I’ve been against check-cashing places because I hate the idea of paying someone for my own money, but then I got to thinking: how much do you pay in a month in ATM fees? It’s $1.75-$3.50 a pop, plus a ~$2 fee if you’re not going to your own bank’s ATM. Especially if you’re the kind of person who makes multiple small withdrawals, that can really add up. Let’s not forget overdraft fees, low balance fees, fees for them letting you spend more than you have, and the crappy interest offered by most retail banks. So this is not to say that check cashing places are great, but that if you don’t play the game right, a bank can be just as bad.
(Photo: zeebahtronic)
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@algormortis: Well, 2500 quarters is $625, did some waitress get the $375 you misplaced for helping you carry the quarters to the cashier?
@Jeneni: USPS charges $1.05 on money orders up to $500, $1.50 from $500.01-$1000.
I can go to Bank of America, with a check from their customers(a paycheck or personal check), for any amount, they charge six bucks. For a 10 dollar check, six bucks.
It’s actually cheaper for me to cash my check at a cashing place, and I save the 3 bucks in gas anyway
@GenXCub: Reno, NV is the same thing. Go to the Peppermill Casino and they will give you two drink tokens to cash your check.
I’m all about getting cash back at Target or the grocery store when using my debit card. Just to keep a steady $10-$15 cash on me for vending machines or whatever. I use the ATM like once every two months, only when I think I’ll needing more than $20 cash (if I anticipate spending some dough on souvenirs at a sporting event or something).
I think you all are missing the point of the troubles that one can find themselves in from using a check cashing place.
Yes cashing a paycheck or your own check for cash for a reasonable fee is no worse than an ATM fee or whatever. But a regular bank will not cash a check from your own account if there is not enough money (they look at your account balance right then).
On the other hand most check cashing places will front you the money for the same fee on a post dated check. What happens if that date hits and you don’t have the money? The check places will roll-over the debt you have now incurred with an ever increasing fee structure. Therein lies the real danger. Very similar to what credit card companies were doing by not forcing minimum payments that would create an eventual payoff date (which the gov just made them stop last year).
On the subject of slavery. Yes debt = slavery in as much as you are pledging your ability to earn money (i.e. working in most cases) to the bank loaning the money and if you define slavery as the lack of freedom (financial in this case). If all of the money you realize from work goes to paying off debt, you are truly enslaved to the bank. You are just a money-mule between your employer and the bank. Instead of whippings you get bad credit, judgments, garnishments, etc. for lack of performance. The pisser here is that most Americans willfully and gleefully trade this freedom for cool stuff (myself included).
In conclusion… Check-cashing for reasonable fee != bad. Cashing post dated checks and giving their customers the rope to hang themselves with == spotty, still collecting ever increasing fees while watching the hanging == evil, Debt != financial freedom and thus arguably neo-slavery.
@ZekeDMS: Are you sure Bank of America charges to cash their own checks? That’s ridiculous but I wouldn’t put it past them…
I can second the USAA comment. All ATM charges are refunded to your account at the end of the month up to $15!
My bank refunds me up to $6 per month in ATM fees. The ATM here at work is through IBM credit union and they don’t charge fees to anyone…. so even though IBM doesn’t charge me Wachovia still deposits $6 per month. They =are bound to catch up but in the mean time I will be making $2 every time I take out cash.
1. Go to sears and buy a safe
2. Put safe in concrete floor and hide with little door and carpet
3. Go to bank
4. Withdraw your money
5. Exchange it to Euros (the way the dollar is going you are making more money having it in a safe in the form of euros than as dollars in an intrest bearing account. If you think i’m paranoid, just do the math.
@KogeLiz: I do the same thing – especially since many cabs (in SF) won’t/ don’t take credit cards, or if they do, it’s only for a $20+ fare. And that seems to only happen going to/ coming from the airport.
Also, it makes me feel like an idiot if I’d have to bust out the check card for a small purchase – like a can of soda or pack of gum. (Besides, most of the mom-and-pop stores have a minimum, and sometimes a surchage on top of that.)
Just use Schwab. No fees at all. None. And they pay 4% interest on checking. Check cashing is for people who don’t have bank accounts.
Cant remember the last time is used cash and I’ve only written about 3 checks in my life. Get a bank account and a debit card, dont be stupid, and you wont pay any ridiculous fees.
Meh, I can’t remember the last time I used a bank. I’ve been using the same check cashing place for about 4 years now. They charge 1.5%.
As I make more and more money I’ll probably switch to a credit union.
Screw banks.
I’ve never been charged anything to use Fifth Third’s ATMs (where I have a checking account), and I don’t ever use ATMs of any other bank.
I can’t think of any good reason to use a check cashing store. Open a checking account, put $100 in it to keep the minimum balance, and cash or deposit your checks at the bank. Voila, no stupid fees!
In the states where check-cashing places have been regulated out of business, it has been found that people end up making more in overdraft fees than they were paying in usurious interest and check cashing fees.
It’s just that the good, upstanding bankers are getting it instead of the dirty, smelly, tow-truck driving check cashing people.