Knowledge — 2 years ago

What is a Cashier’s Check?

by Keren P.

Cashier’s Check, What is a Cashier’s Check

How to Get a Cashier’s Check?

What is a Cashier’s Check

A cashier’s check is a check that is drawn not on your account, but on the bank’s name. This is a secure way of payment. In some kind of transactions, like real estate, a personal check is not accepted as there is a risk that the check may be returned for lack of funds.

A cashier’s check, on the other hand, is a highly secure type of payment as the recipient is assured of getting paid since the check is issued by the bank itself. This is also called an official check.

How to get a cashier’s check?

Getting a cashier check is very easy. You can get it from a bank or a credit union. The procedure is simple and is as follows:

  • The check is made in the name of a payee, the person to whom you are issuing the cashier’s check. Make sure the name of the payee is the same as it appears on an identification document. This is required as the payee would need to provide identification before collecting on the check. If the name doesn’t match he will not get the payment.
Cashier’s Check
  • You can ideally go to the bank where you have an account to get a cashier’s check easily. The amount would be deducted from your account and the cashier’s check issued. In case you approach any other bank, you need to take cash with you and pay it before collecting your cashier’s check.
  • You need to provide the details of the payee to the teller in the bank so that the cashier’s check can be issued to you. A form may have to be filled in. Nowadays some banks allow you to do it online and the cashier’s check would be mailed to you.
  • You need to give your account details and the payee details to the teller so that a cashier’s check can be issued. If you do not have an account, you need to pay cash to collect the check.
What is a Cashier’s Check
  • The bank charges a fee for issuing the cashier’s check. It would be usually less if you have an account in the bank. If you have a high value or premium account, then you may not be charged any fee. This varies from bank to bank. On average, a bank would charge around $10 to issue a cashier’s check.
  • The teller would issue the cashier’s check with the name of the payee on it and the amount you specified. It would be stamped and signed. You may be asked to produce identification before you collect the cashier’s check.
  • It is advisable to collect a receipt for the payment you have made to get the cashier’s check. The reason is that if the payee doesn’t utilize the check, then you can cancel it later and get back your money. For this, you need the receipt.
  • Once you get the check, you can leave the bank and then hand over the cashier’s check to the payee.
How to Get a Cashier's Check

Things to keep in mind about cashier’s checks

  • If you lose the cashier’s check, you need to submit an indemnity bond to get another cashier’s check. This would, however, take some time.
  • Ensure that you get a cashier’s check only from a bank or credit union. Do not take it from any other party.
  • There is no limit on the amount you can pay using a cashier’s check. This is the biggest advantage. Money orders, on the other hand, have an upper limit.
  • A cashier’s check is secured and would have security features to prevent any kind of fraud.
Money Order

Cashier’s Check, Certified Check and Money Order

Aside from a Cashier's check, you can also get a personal check or a money order; a certified check is a personal check that is written by a bank customer. The certified check will then be drawn on the customer's account. The bank needs to certify the signature of the person who issued the check is genuine, and that the customer has enough money is his/her account to cover the check when the check was issued.

A money order, on the other hand, is a prepaid form of payment that is restricted by a maximum money amount. Money orders, unlike cashier's checks, are paid in advance, so they are not backed by a bank. A money order is usually paid with a debit card or cash. To make or get payments, you can choose between the three, and choose the one that has the best rates.

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