How to cash a large settlement check?

Asked by: Prof. Noe O'Keefe  |  Last update: February 13, 2026
Score: 4.6/5 (63 votes)

To cash a large settlement check, deposit it at your own bank for free (expect a possible hold), visit the issuing bank (may have fees), or deposit/cash at another bank with ID, but avoid high-fee check-cashing stores and grocery stores, as they take significant percentages and may not handle large amounts, and always endorse the back and bring photo ID.

Will a bank cash a $100,000 check?

Generally, there's no set maximum limit for cashing checks. However, banks are required to report transactions over $10,000 to the government, as part of measures against money laundering.

Where should I deposit a large sum settlement check?

Check cashing stores, grocery stores, or retailers like Walmart offer quick cash but often charge high fees and may have limits on large checks. Your attorney typically deposits the settlement check into a trust or escrow account, pays liens and fees, then issues you a check for the remaining amount.

Where can I cash a $20,000 settlement check?

A personal injury case settlement check can be cashed at a bank, grocery store, or check-cashing store. Where a person cashes their check can impact the total amount of money they receive. This is due to the fact that certain check-cashing locations charge fees.

How do I cash a large settlement check without a bank account?

Cash it at the issuing bank (this is the bank name that is pre-printed on the check) Cash a check at a retailer that cashes checks (discount department store, grocery stores, etc.) Cash the check at a check-cashing store. Deposit at an ATM onto a pre-paid card account or checkless debit card account.

How to invest lawsuit money or Settlement Money

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How long does it take for a $30,000 check to clear?

Bottom line. In most cases, a check should clear within one or two business days. There are a few cases in which a check might be held for longer, such as if it's a large deposit amount or an international check. Make sure to review your bank's policies for what to expect in terms of check hold times.

Can I cash a check over $10,000?

Any cash or check transactions exceeding $10,000, or a series of smaller transactions designed to avoid reporting thresholds (“structuring”), will be reported to the IRS by banks as required by the Bank Secrecy Act.

Will a bank cash a $20,000 check?

While you can deposit checks over $10,000 at any bank or ATM, cashing this requires the bank to report it to the Internal Revenue Service (IRS), a rule for all cash transactions over $10,000. If you need a substantial check, you may also want to consider cashier's checks that the bank guarantees.

What to do with a $200,000 settlement?

What Do I Do if I Have a Large Settlement?

  1. Hire a Financial Advisor.
  2. Prepare for Potential Tax Implications.
  3. Build an Emergency Fund and Get Out of Debt.
  4. Consider Potential Investment Opportunities.
  5. Get Access to Your Settlement Funds as Soon as Today.
  6. Call Our Loan Specialists at High Rise Financial for Help Today.

What do I do with a large settlement check?

Use your settlement wisely by paying off debts first, building an emergency fund next, and then investing for long-term growth. Avoid spending the money on non-essential items. Neglecting financial planning with settlement funds can lead to wasteful spending and missed opportunities for securing your financial future.

Where do millionaires keep their money if banks only insure $250k?

Millionaires keep money above the FDIC limit by spreading it across multiple banks, using networks like IntraFi (CDARS/ICS) for insured deposits, diversifying into non-bank assets like stocks, bonds, real estate, and gold, or using private banks with wealth management, and even offshore accounts for secrecy/tax benefits. They focus on diversification and liquidity, not just bank insurance. 

What is the $10,000 bank rule?

The "$10,000 bank rule" refers to federal requirements under the Bank Secrecy Act (BSA) for financial institutions to report cash transactions over $10,000 to the government via a Currency Transaction Report (CTR). This rule, enforced by the IRS, also requires businesses to file IRS Form 8300 for large cash payments to combat money laundering, tax evasion, and other crimes. It's a reporting threshold, not a limit, but attempting to avoid it by breaking up transactions (structuring) is illegal.
 

What to do with a $500,000 settlement?

– What do I do with a large settlement check?

  • Pay off any debt: If you have any debt, this can be a great way to pay off all or as much of your debt as you want.
  • Create an emergency fund: If you don't have an emergency fund, using some of your settlement money to create one is a great idea.

How to cash a $500,000 check?

These are some options for people who may need to cash a large check:

  1. Issuing banks. Keep in mind that not all banks and credit unions offer this service, so it's always best to check ahead and ask if they allow non-customers to cash checks. ...
  2. Check-cashing stores. ...
  3. Third-party checks.

Can a bank refuse to cash a large check?

Banks often refuse to do so if an account doesn't exist, you're missing proper ID, you're trying to cash business checks, the amount is too large, or the check is either stale or post-dated. Being prepared before you head to the bank can help you prevent issues and ensure a smooth check-cashing experience.

How long does it take for a 1,000,000 check to clear?

Generally, it takes two to five business days to get all the funds from a check into your account. However, some factors might hold up the check-clearing process, like the status of your account or the place where you deposited the check.

Where can I cash a big settlement check?

A personal injury settlement check can be cashed at a bank, grocery store, or check-cashing store. Mighty recommends using a bank and checking account to cash your settlement check due to high fees and other risks if you don't use a checking account.

What is the smartest thing to do with $200,000?

The best way to invest $200,000 is through a diversified portfolio that includes a mix of individual stocks, index funds, real estate, and fixed-income options like bonds or CDs. Counting on your risk tolerance, time, and monetary goals, the allocation between these asset classes will vary.

Do I have to report settlement money to the IRS?

Yes, you often have to report settlement money to the IRS, but whether it's taxable depends on what it's for; generally, money for physical injuries/sickness is tax-free, while lost wages, punitive damages, and emotional distress not linked to physical harm are taxable, treated like regular income or reported on forms like Form 1099-MISC, requiring careful review of your settlement agreement with a tax pro. 

What is the easiest way to cash a large check?

How we make money

  1. Cash your check at the issuing bank.
  2. Cash your check at a retailer.
  3. Load funds onto a prepaid debit card.
  4. Sign your check over to someone you trust.
  5. Cash your check at a check-cashing outlet.

Do banks flag large check deposits?

However, banks do report deposits over $10,000. This is required as part of the Bank Secrecy Act (BSA). Note that this amount is the daily aggregate amount, meaning if you have multiple transactions in a day that add up to $10,000 or more, the financial institution must report it.

Can I withdraw 100k from my bank?

That said, cash withdrawals are subject to the same reporting limits as all transactions. If you withdraw $10,000 or more, your bank must report it to the IRS by law. This helps prevent money laundering and tax evasion. Still, few banks set withdrawal limits on a savings account.

What is the largest check a bank will cash?

You can generally cash very large checks at a bank, but there's no universal limit; it depends on your account history, the bank's policies, and the check type, with amounts over $10,000 triggering mandatory reporting to the IRS. For big checks, expect extra verification, potential holds on funds, and it's best to call the bank first, especially if you don't have an account there or if it's not a cashier's check. 

What is the IRS $10,000 rule?

The IRS $10k rule primarily refers to Form 8300, requiring businesses to report cash payments over $10,000 in a single or related transaction to combat money laundering, and also to bank reporting of cash deposits (Currency Transaction Reports) for similar anti-financial crime reasons, though these are handled by financial institutions, not individuals directly, notes IRS Form 8300 reference guide and Bank Secrecy Act. The key is any trade or business receiving >$10k cash must file, and banks must report deposits >$10k.
 

Do banks report check deposits to the IRS?

Financial institutions have to report large deposits and suspicious transactions to the IRS. Your bank will usually inform you in advance of submitting Form 8300 or filing a report with the IRS. The Currency and Foreign Transactions Reporting Act helps prevent money laundering and tax evasion.