Because cashier’s checks usually have watermarks and require signatures from one or more bank employees, the bank has a reassurance that the check won’t be counterfeited. You don’t have to worry about sharing your personal checking account information with the payee, as the check isn’t drawn from your account. Cashier’s checks, certified checks and money orders all can be issued by banks or credit unions. The main difference between a money order and a cashier’s check or certified check is that you don’t necessarily need a bank account to purchase a money order. You can also get money orders at other locations, such as grocery stores or post offices.
You’ll also need to provide your government ID, as well as the recipient’s address if the check will be mailed. The bank will then print the check to the person or business you have indicated in the amount you requested. It only takes a few minutes, and you can use the check right away. Double check the amount and write it down if necessary because this amount cannot be changed once the cashier’s check has been printed. Once you provide all of the required information, the bank will withdraw the check amount and processing fee from your account.
Is there a fee for a cashier’s check?
This means you may not be able to get a refund for the funds used to purchase them. To avoid unnecessary expenses, it’s essential to be certain about the payment before obtaining a cashier’s check. With a wire transfer, money is sent electronically directly from your account to someone else’s, with no check needed. It’s a low-stress way to send money, but there are some downsides. In some scenarios, the benefits and protections that a cashier’s check offer make it a better choice than a personal check. Cashier’s checks can offer several benefits when making payments, but there are a few potential downsides to keep in mind.
In another popular scam, the victim receives a letter stating they are selected to work as a mystery shopper. To be successful, the scam relies on the victim wiring the funds before discovering the cashier’s check is a fake. Some apps limit how much you can send in a single transaction and per day. If you have a large amount to send, you may be better off looking at a cashier’s check or one of the other options mentioned above. Keep in mind that each one is different when it comes to convenience, speed and cost.
How To Get a Cashier’s Check
A wire transfer makes it easy to send or receive money in a matter of hours, for example, but it can mean paying a steep wire transfer fee. If you want a basic checking account with no monthly maintenance fee, or an interest-earning checking account, we’ve got the options that are right for you. The bank will take the money from your account immediately, so make sure you have enough to cover the cost of the check amount and fee before you visit the branch. Contact the bank that’s named on the check to make sure it’s authentic before you accept it for payment from an unknown party or try to cash or deposit it.
- When you request a cashier’s check to pay a business or person, the financial institution first checks your account to make sure you have the amount you need to pay available.
- The cost of obtaining a cashier’s check varies depending on the institution, typically ranging from $5 to $15, although some banks may offer them for free to account holders.
- This essentially reassures the bank that they won’t have to cover the payment for both checks if the lost one is found.
- A cashier’s check may list your account number and other information typically printed on a personal check.
- A wire transfer makes it easy to send or receive money in a matter of hours, for example, but it can mean paying a steep wire transfer fee.
You don’t want to walk around with the cash for your payment, and the person selling the car may be uncomfortable taking a personal check from a stranger. While that sounds simple enough, it can take time to secure an indemnity bond through an insurance company. And the bank may require you to wait 30 to 90 days before it will issue a replacement cashier’s check to give the original one time to be found. This can be inconvenient if you still need to make a payment, but don’t have funds in your account to cover a new cashier’s check. Money orders and cashier’s checks can be a convenient way to pay someone or to receive money. Remember to check the fees involved and whether the issuer puts any limits on dollar amounts if you’re planning to purchase either one.
These places generally will also cash a money order they’ve issued, or you can deposit a money order into your bank account. Compared to a cashier’s check, a money order may be less expensive. The United States Postal Service, for example, offers small money orders for less than $2. They’re also more convenient to get, as you’re not limited to finding them at banks and credit unions.
Cashier’s Check vs. Other Forms of Payment
A cashier’s check may list your account number and other information typically printed on a personal check. A money order doesn’t have this information, which makes it especially useful for sending money through the mail. Social payment apps may be useful for sending money to friends and family.
- This means you may not be able to get a refund for the funds used to purchase them.
- If you send a cashier’s check to someone else, there’s typically nothing you can do to cancel the payment.
- The bank takes the money from your checking or savings account and puts it in its own account when you purchase a cashier’s check.
- While a certified check is also an official form of payment, these checks are drafted against your account directly instead of the bank’s.
- Because they’re backed by your bank, cashier’s checks may be preferred if you’re putting a down payment on a car or making a security deposit on your new apartment.
While a cashier’s check is a great way to move large amounts of money around, there are other ways, too. One of the most popular methods is an electronic funds transfer, which is used in wire transfers, direct deposit of paychecks, and ATM transactions. If you’re sending money abroad, a cashier’s check may not be the best option, and you may want to look into an international money transfer instead. Plus, you can track your transfers in real time so you know that your money has safely arrived at its destination. Cashier’s checks are generally considered more secure than money orders.
When do I need a cashier’s check?
Don’t assume you have the funds until the cashier’s check has cleared. If a cashier’s check is not genuine, and, you unknowingly accept a fraudulent cashier’s check in exchange for goods or services, you will likely be the one who suffers financial loss. Grocery stores, post offices, check cashing stores and many other places sell money orders. The fee to order a money order is typically a couple dollars or less, depending on where you purchase it. The validity period of a cashier’s check varies by financial institution, typically ranging from 60 to 90 days. After this period, the check may be subject to expiration or additional processing requirements.
This bond protects the bank if you lose the cashier’s check a second time. It can take anywhere from 30 to 90 days for a new check to be issued after you file your request for one. You must pay for a money order with cash, a debit card or traveler’s checks when you purchase one. You generally can’t use a credit card or write a personal check, and the transaction could be treated as a cash advance if you are able to use a credit card. Like cashier’s checks, you’ll pay a fee for a money order, but it’s usually inexpensive.
What Is A Cashier’s Check And How Do You Get One?
Most people requesting a cashier’s check find it worth this nominal charge for the convenience of not having to carry cash with them for large purchases or deposits. When you pay for a cashier’s check with cash, make sure you have enough to cover the fee. If you plan to pay directly from your bank account, again, be sure there is enough money in the account to pay the fee as well.
