A cashier’s check is signed by a teller or cashier and uses the bank’s own funds. With a regular check, the check writer guarantees payment. However, with a cashier’s check, the bank guarantees payment.
Cashier’s checks are safer compared to regular checks because they shouldn’t bounce. If you want to learn more about what a cashier’s check is and how to get one, keep reading.
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What is a Cashier’s Check?
As mentioned previously, a cashier’s check is a check that is taken from the bank’s own funds and is signed by a cashier or teller. They are guaranteed because the bank is held accountable to pay the amount, instead of the person purchasing.
Why You Need a Cashier’s Check
If you are paying for a large purchase, like a car, a cashier’s check might be the best option for you. Although, there are more modern options, they are still popular and useful for these reasons:
- Guaranteed funds: Before printing a cashier’s check, the financial institution receives the money. They do this by either removing money from the account or requiring cash from the person who asks for the check. Because of this, banks can assure that the check will clear, which gives security to the recipient, who is usually selling something. On the other hand, a personal check will only go through if the funds are present in their account at the time when the recipient tries to deposit the check.
- Quick availability: The recipient or seller can access the amount almost instantly after depositing a cashier’s check. Usually, the first $5,000 must be made accessible within one business day, whereas personal checks are $200.
How to Get a Cashier’s Check
- You must know the exact amount and the name of the person receiving it before you ask for the check, and also personal identification. Although cashier’s checks are taken from the funds of the financial institution, you must let them know the check amount beforehand. Additionally, you need the name of the business or person you are paying, since you are not allowed to receive a blank cashier’s check. Your ID is also necessary to have because the teller will most likely ask to see it.
- Go to your local branch and ask for the check from a teller. Although this is the typical way, some banks, particularly online ones, use other ways like messaging or calling customer support. If you were to do this, it would be mailed to the person receiving the check, which would take longer.
- Pay the check amount and any other fees. The full amount of the check is not going to be accessible until the check is issued. Additionally, make sure that you have enough in the account to pay any fees.
- Get a receipt. Lastly, you should ask for proof of payment because you can use this to locate the check.
Cashier’s Check vs. Money Order
Cashier’s checks and money orders are alike in some ways; both are typically safe forms of payment because you can purchase them with cash, which means that they most likely won’t bounce. The difference between the two is that money orders come from different issuers. Additionally, you can buy money orders at banks and credit unions, as well as post offices, retail stores, and money transfer businesses.
Furthermore, money orders have maximum issue limits, so if you are making a large purchase, like a home, a money order might not be your best option.
Author’s Verdict
Cashier’s checks can be useful for large payments and are safer than personal checks. Hopefully this post helped inform you about what they are, when you need one, and how to get it.
In addition, we have a list of bank promotions to get some extra cash in your pockets today. You may also want to check out savings accounts if you want to get started on saving up money.
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