Safeway is the latest US supermarket to offer consumers financial incentives to cash their economic stimulus cheques in store.

Safeway has offered club card customers a 10% discount when they cash their economic stimulus cheques in store for free. The 10% discount can be used for same-day or following day purchases.

"We are pleased to offer this no-cost cheque cashing service and to provide customers with an extra discount to help stretch these funds farther," said Safeway chairman, president and CEO Steve Burd. "We understand that most people have plans for their checks. Our program provides consumers the freedom to allocate their rebates according to their needs, while enjoying 10% savings if they spend some of it at Safeway."

The offer is good at all Safeway and Safeway-owned stores, including Vons, Pavilions, Randalls, Tom Thumb, Carrs, Dominick's, Genuardi's and Pak 'n Save.

Earlier this week Wal-Mart also said that it won't charge customers a fee to cash economic stimulus cheques.

Meanwhile, Supervalu and Kroger have offered cash bonuses for cheques converted into store cards.

The tax rebates are expected to reach 130m households. The payments range up to US$600 for individuals and $1,200 for married couples, plus $300 per child for eligible parents.