People across the U.S. receive settlement checks from insurance companies for a variety of reasons, including payouts connected to car accidents and storm damage. Most settlement checks are payable to the insured and a third party involved in the case, such as an automobile repair shop or attorney. Banks cannot cash checks payable to a business, and generally will not cash checks payable to two unrelated parties. Banks will cash checks payable to an individual, but high-dollar checks require extra planning on the part of the payee.
Look at the check. On the front of the check, usually under the numeric dollar amount, you will see the name of the drawer bank. Some insurance checks feature the names of two banks: a drawer bank and a bank through which the check is payable. If negotiating your check involves just one bank, look the bank up online and locate a nearby branch. If your check names two banks, call the bank that the check is payable through.
Explain your situation to the bank representative. Tell the representative you have a $30,000 settlement check that you need to cash. Ask when you can cash it and what information you will need to provide to do so. The bank may refuse to cash the check because federal laws do not require banks to negotiate checks for non-customers and banks do not keep excess cash on hand. If the representative agrees to cash the item, she will probably require you to wait two or three days for the bank to make a special cash shipment order. Agree to a time to cash the check.
Go to the bank. Give the teller your two forms of ID. You will probably be required to provide a thumb print sample somewhere on the check. Due to the amount of the check, the teller will call the drawee and verify the legitimacy of the check before cashing it. The teller will ask you some additional questions about the source of the funds. The Patriot Act requires banks to maintain information on people conducting certain large dollar transactions. Having established your identity, the teller will cash the check. Request a bag to conceal the money in as you leave the bank. The bank may charge a check cashing fee of between $5 and $10.
Things You Will Need
- Government-issued identification
- Secondary form of identification
- Your bank will not cash a check that exceeds your average balance because the drawee could return the check unpaid at a later date, in which case the bank would incur a loss. If you typically have in excess of $30,000 in your account, the bank might let you cash the item, because it could recoup the money from your account if the drawee bank returns the item unpaid.
- Very often settlement checks issued by insurance companies are returned unpaid because the issuers require endorsements to match the payee line. Omitting a middle initial or suffix or abbreviating a name could cause the drawee bank to reject the item for improper endorsement.
- If you have a settlement check made payable to you and a third party, both of you must endorse it, and one of you can deposit it in an account.
- If you leave a bank with $30,000 in cash and are robbed, the bank will not reimburse you for your loss. It is wiser to exchange a large dollar check for a certified check, which your bank will deposit without a hold.