When Do You Need a Cashier's Check?
Cashier's checks are commonly required for real estate closings, large purchases like vehicles, security deposits, and any transaction where the recipient needs a payment guarantee. They are also used when personal checks are not accepted due to the risk of insufficient funds. Any situation involving a large sum where the recipient wants assurance of payment may call for a cashier's check.
How Do You Get a Cashier's Check?
Visit your bank in person with the recipient's name and the exact dollar amount. The bank will verify you have sufficient funds, withdraw the money from your account, and issue the check. Most banks charge $8 to $15 for a cashier's check. Some banks waive the fee for premium account holders. You will typically need a valid photo ID.
What Is the Difference Between a Cashier's Check and a Money Order?
Both are prepaid and considered more secure than personal checks. Cashier's checks are issued by banks for any amount with no typical upper limit and are best for large transactions. Money orders have a limit of $1,000 per order, cost less (usually under $2), and can be purchased at post offices, grocery stores, and convenience stores as well as banks.
Frequently asked questions
Can a cashier's check bounce?
Legitimate cashier's checks do not bounce because the bank has already set aside the funds. However, fraudulent cashier's checks are common in scams. Many experts recommend verifying a cashier's check by contacting the issuing bank directly before accepting one from an unknown party.
Can you cancel a cashier's check?
You can request a cancellation, but the process is more involved than stopping a personal check. You will need to visit the bank, fill out a declaration of loss, and potentially wait 90 days before receiving a refund if the check was lost or stolen.