Check-cashing entities are more expensive to use than a basic checking account at a bank, according to a report from the state Division of Banks.

The study found that, on average, consumers will pay four to 40 times per month the maximum fees charged to maintain a basic checking account to cash weekly payroll checks and write money orders. Annual check casher fees would range from $139.62 to $1,424.36 to cash weekly payroll checks and write money orders. In contrast, a basic checking account charges $3 per month, or $36 per year, for basline services.

"Consumers pay significantly higher fees when bringing their checks to check-cashing companies compared to the minimal costs of having a basic checking account at a bank," said Barbara Anthony, undersecretary of the Office of Consumer Affairs and Business Regulation. "It makes better financial sense for a consumer to have a relationship with a local bank."

A review from the Division of Banks determined the average percentages charged by check cashers to cash a variety of checks ranged from 2.39 percent up to 6.83 percent of the check’s face value, according to a statement. Although state law doesn’t set or limit fees for cashing checks, check cashers must post a schedule of fees and charges in a clear and conspicuous place within each business location.

"The fee posting requirement allows consumers to compare fees among the Massachusetts licensed check cashers," said Steven L. Antonakes, the commissioner of the Division of Banks. "However, many consumers are unaware that by having a low-cost checking account at a bank they can avoid paying a fee each time they cash a check."