If you've been given a cheque to cash but don't have a bank account, there are ways of accessing these funds.
However, no matter which method you choose, it's highly likely that you'll need to provide some form of photo identification.
This is crucial in preventing fraud — and ensuring that you're the intended recipient of the cheque in question.
Here, we'll walk you through some of the options for cashing a cheque without a bank account.
Go to the Issuing Bank
Whenever a cheque is issued in the UK, you'll be able to see the logo of the bank where the person or company that's made the payment has an account.
From here, one option you can try is popping into one of their branches to see if they can help.
Although having an account with them won't be a requirement for using this service, you will need to prove the cheque is rightfully yours by signing the back and providing ID.
All of this might come with a charge — and if you don't have an account of your own, their customer service staff may encourage you to consider banking with them.
Visit Your Local Post Office
Failing this, another option is to head to your local Post Office. Many branches offer banking services, and they may be able to assist you.
Depending on the nature of the transaction, it may be the case that only cheques issued by government bodies — such as HM Revenue and Customs — will be accepted.
Given the Post Office has an extensive network of more than 11,500 locations nationwide, and many banks are closing their brick-and-mortar branches, this may also be a more convenient option if you don't have an account of your own.
Endorsing Cheques
A word of caution about this particular method — some banks won't allow you to do this, primarily because they're concerned about the risk of fraud.
Endorsing a cheque basically means you're nominating someone else to cash in the funds on your behalf.
In theory, this means that a friend or relative you trust can get the money deposited into their bank account — and hand it over to you.
Make sure you double check whether a bank would be willing to accept such a cheque before you fill out the endorsement area at the back.
In such a scenario, a better alternative might be to ask the person or company that sent you the cheque in the first place to reissue it in your loved one's name.
Cheque Cashing Retailers
There are specialist retailers out there who will cash a cheque on your behalf — however, they all need to comply with anti-money laundering regulations.
In most cases, you'll need to provide a valid passport or driving licence for verification. Proof of address is also required, such as a utility bill from the past three months.
You might also be asked to provide documentation that may have come alongside the cheque — such as a letter from the company in question, or an invoice.
The biggest downside of using these retailers is that they can be pretty expensive. You might need to pay a flat rate for every cheque that's processed, as well as a commission.
As an example, some providers charge fees of 9% that's based on the value of the cheque — and that means you'd lose £9 in every £100.
That being said, there can be perks to cashing a cheque with one of these retailers.
For one, you'll get cash in your hand straight away once approved. Some banks can take up to five business days in order to clear funds and add them to an account.
Many retailers also offer much more flexible opening hours than high street banks, meaning you'll be able to use their services on evenings and weekends.
What Are the Alternatives?
Given the expense and inconvenience associated with attempting to cash a cheque without a bank account, you might want to consider opening one.
Even if you've got a bad credit history, you will be able to apply for a basic bank account from financial institutions across the UK.
During the application process, all you'll need is:
- Information about where you've lived for the past three years
- Details about your current employment arrangements and income
- Valid photo ID such as a passport or driving licence
Application forms can normally be filled out in about 15 minutes — and even if you aren't approved instantly, you'll normally get a debit card and an online banking login a few days later.
This will also be great news if you get cheques in the future. Why? Because many banks will allow you to deposit them directly through their app.
All you'll need to do is take a photo of the front and back of the cheque on your smartphone.
Top tips for success include:
- Making sure you're taking the photograph in good light
- Placing the cheque against a dark background so the edges are visible
- Holding the camera directly above the cheque
Frequently Asked Questions
How Popular Are Cheques?
While cheques are still accepted by many banks, their usage has declined dramatically in recent years. Many retailers no longer accept them as a payment method.
According to UK Finance, 129 million cheques were issued in 2022 — but 15 years earlier, that figure stood at 1.5 billion.
Estimates suggest that cheques will be used for just 66 million transactions by 2032.
How Long Do Cheques Take to Clear?
In September 2019, the UK banking sector rolled out a new system that streamlines the clearing process, meaning cheques end up being added to your account faster.
If you deposit a cheque by 3.30pm on a weekday, you'll normally be able to start using the funds one business day later.
However, deposits made on a Saturday or after 3.30pm on a weekday will take 48 hours.
How Long Are Cheques Valid?
Generally speaking, a cheque is valid for six months after it is issued by a person or company.
Beyond this date, you may find that some banks will refuse to accept them.
Where Can Cheques Be Deposited?
Beyond the methods outlined above, don't forget you'll be able to cash a cheque at your local bank branch or Post Office.
In some cases, you'll even be able to make a deposit at certain cash machines.
What Happens if a Cheque Bounces?
If the person you paid you the cheque has inadequate funds in their account, your bank may reverse the transaction and charge you a fee.
Be aware that this can happen after the cash has landed.
