When you’re making important payments, you might need something more official than a regular check. For example, there are some instances where you may need to make a large payment that requires you to offer proof that you have the funds.
You also might need something that is as good as cash. And that’s exactly what a cashier’s check is! In instances where these circumstances apply, you’ll want to use a cashier’s check, which is sometimes referred to as an official check.
How does a cashier’s check work?
Cashier’s checks are a form of payment in which a check is issued and guaranteed by the bank. This means that the funds will be drawn and backed by the bank itself. In addition to this, cashier’s checks are also signed by bank tellers.
Because the bank guarantees payment, the receiver of the cashier’s check can be assured that the check will not bounce and the payment will ultimately be made, making them the perfect form of payment in certain situations.
Is a cashier’s check different than a regular check?
Unlike a regular check, the bank guarantees that the payment will be made when you offer a cashier’s check. Since banks have large amounts of money, cashier checks can be trusted, assuring the people receiving the payment that the check will not bounce.
Another difference between a cashier’s check and a regular check is that the bank teller will sign the check, even though the money will still be drawn from your bank account.
When do I need a cashier’s check?
Cashier checks are becoming more and more outdated as a form of payment with each passing year. The digital economy is definitely playing a role in its decrease in popularity. That being said, there are still certain situations where a cashier’s check is a much better option than cash or even a regular check.
For example, if you are purchasing a car from someone you don’t know for a large amount of money, then a cashier’s check can help you feel safe. It can also help the seller feel more confident about the payment going through instead of bouncing.
Where can I get a cashier’s check?
Getting a cashier’s check is easy. Anyone can do it, whether they have a bank account or not.
How to get a cashier’s check
Since a cashier’s check is written for you by the bank, you will need to visit your bank’s local branch to obtain one. You will need to bring a copy of your ID in order to complete the process as well. Once you’re at the bank, obtaining a cashier’s check is as simple as asking the teller to fill the check out for you.
Know the exact amount
Preparing to get a cashier’s check is the first step of getting one. You’ll need to know the exact amount of money that you need, down to the last penny. You’ll also need to know the full name of the person you are paying as the cashier’s check will be written to them.
Visit a bank
Since a cashier’s check is written for you by the bank, you will need to visit your bank’s local branch to get one. You will also need to bring a copy of your ID in order to complete the process. Once you’re at the bank, obtaining a cashier’s check is as simple as asking the teller to fill the check out for you.
Pay the check amount
Once you request a check from the teller, you will need to pay for the check. If you have an account at the said bank, you will need to let the cashier know which account to draw the funds from. If you don’t plan to draw from an account, you will need to have the cash upfront.
Pay fees
Fees for cashier’s checks usually range between $0 and $20, and most banks have a fee associated with obtaining one. That being said, many banks also offer discounts on fees associated with cashier’s checks, sometimes offering to waive the fees altogether. You should check with your bank to see if you qualify for any discounts or waived fees.
Get a receipt
Just in case you accidentally lose a cashier’s check or something else unfortunate happens to it, it’s always best to ask for a receipt from the teller. That way, you can prove that you obtained a cashier’s check in the event that it goes missing.
How much does a cashier’s check cost?
Cashier’s check fees vary in pricing from one bank to another. However, many banks offer some type of fee waiver. That said, here’s a breakdown of several popular banks and the cashier’s check fees that they impose.
| Bank | Cashier’s Check Cost | Fee Waiver |
| Ally Bank | Free | N/A |
| Bank of America | $15 | Preferred rewards members |
| Chase | $8 | Premier Plus, Secure, and Sapphire Checking members |
| Capital One | $10 | None |
| PNC | $10 | Performance Checking and Virtual Wallet Performance checking account members |
| U.S. Bank | $10 | Military members |
What if I lose a cashier’s check?
If you lose your cashier’s check, it’s important to notify the bank immediately. You will need to fill out several forms, including a declaration of lost form, which documents the situation. From there, you’ll more than likely need to pay a cancellation fee. It’s important to know that it can take up to 90 days before you receive money back after losing your cashier’s check.
Are there fraud risks with cashier’s checks?
For the most part, cashier’s checks are a trusted and secure method of payment that are less prone to fraudulent activity than other methods of payment. That being said, there are popular scams that do happen with cashier’s checks, and you should know about them so that you can identify something as a scam if you come into contact with one. Be especially careful when doing the following:
- Try to use other forms of payment when selling goods over the internet.
- Ask for a cashier’s check from a bank you trust.
- Never accept a check for more than the selling price.
- Make sure you trust the people you do business with.
Cashier’s check vs money order
Money orders and cashier’s checks are similar in that they are both alternate forms of checks. However, a money order can be issued by a check-cashing store, like grocery stores, convenience stores, gas stations, and post offices.
Money orders are typically only used in situations where less than $1,000 is needed. However, cashier’s checks are often used in situations where larger payments are being made. Also, the fees associated with cashier’s checks are often much higher than those associated with money orders.
A Useful Alternative to Regular Checks
Cashier’s checks provide a useful alternative to regular checks, and they offer a safe, secure way to conduct business and make transactions. Since the bank guarantees the payment, both parties will have more confidence. Additionally, it’s good to know the ins and outs of cashier’s checks, how they work, and how you can get one when needed.
FAQ
How can I get a cashier’s check?
To get a cashier’s check, simply visit your local bank and ask the teller to fill one out for you. You’ll need to have cash in hand or an account to draw the amount needed from.
Do cashier’s checks clear immediately?
Cashier’s checks do not clear immediately, but they do process much faster than regular checks, and often clear after one business day.
Are cashier’s checks safe?
Since cashier’s checks guarantee that the payment will be made by a bank, they are a safe and secure way to conduct transactions.
