Financial Education: Bank On It

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Banking Services

Many consumers use check-cashing services rather than a deposit account at a bank to cash their paychecks each month. Below is a comparison chart of potential fees that may be related to each type of service.

Fee Comparison Chart

Service Bank Check-Cashing Service
Monthly Fee (shown as an annual amount) $60.00 $0
Fee per Check Cashed $0.00 $5.00
Number of Checks Cashed Annually 48 48
Check Cashing Costs $0 $240.00
Check Order Fee $18.00 $0
Money Order Costs ($.75¢ each, 5 per month) $0 $45
Total for one year of service cashing four checks per month $78 $285.00
Potential Annual Cost Savings with bank services = $207.00

Even though banks charge monthly fees, these examples show it is much cheaper to use a deposit account at a bank.