What Is A Cashier’s Check And How Do I Get One?

A cashier’s check might seem like an outdated payment method, especially with other forms of digital payment available. But when you have to make a large payment, you may need to pay with a cashier’s check. This type of check is different from a personal check you would write. Let’s look at how a cashier’s check works, how much it’ll cost you and where to one.

What Is A Cashier’s Check?

Sometimes called an “official check,” a cashier’s check is guaranteed and drawn against a bank or credit union’s own funds. That means the bank guarantees the payment. When a customer gets a cashier’s check, they transfer money to the bank and the bank in turn pays the recipient.

These checks are usually intended for transactions over $1,000. The bank’s guarantee means the check won’t bounce, which is why it’s a favored method of paying for transactions that involve large amounts of money. It’s safer for the payee (the recipient of the money), and cashier’s checks also clear more quickly than personal bank checks – typically, by the next business day.

When Do I Use A Cashier’s Check?

You can use a cashier’s check for large purchases when you may not be able to use personal checks, debit cards or credit cards. For example, making a down payment on a house or putting down a security deposit for renting an apartment might warrant the use of a cashier’s check and the enhanced security features it offers.

Cashier’s checks aren’t commonly used for making smaller purchases such as groceries and everyday shopping.

Where To Get A Cashier’s Check

You can get a cashier’s check from your bank, credit union or other financial institution. You may also be able to request a cashier’s check online through your bank’s website.

How To Get A Cashier’s Check: Step By Step

Let’s take a quick look at the steps that are necessary to get a cashier’s check.

Step 1. Gather The Payee’s Information

When your financial institution prepares a cashier’s check for you, the name of the party you plan to pay gets printed on the check. Make sure you know the recipient’s name and the exact amount of money you’ll need to transfer. The cashier’s check should display accurate information.

Step 2. Ensure You Have The Funds

Check your bank account or have the right amount of cash handy to cover the cost of your cashier’s check. Keep in mind that you’ll typically need to pay an $8 – $15 fee to your financial institution for the cashier’s check.

Not sure how much money you have in a specific account? You can use Rocket Money^SM to easily verify any amount you have across checking, savings and investment accounts, as needed.

Step 3. Visit Your Bank Or Credit Union

Next, visit your bank or credit union. If you visit a bank you don’t have an account with, you may need to open one with that particular institution before they will issue you a cashier’s check. Be ready with the payee’s name, the check amount, valid identification, and proof of sufficient funds to cover the cost of the cashier’s check and fee.

Step 4. Pay The Check Amount And Any Fees

Pay the full amount of the check and any fees. Before you leave your bank or credit union, make sure all the information on the check is correct. Look over the spelling and the payment amount, and ensure the payee’s information is as it should be.

Step 5. Deliver The Cashier’s Check To The Payee

Once you have the check in hand, keep it in a secure location until you use it. Try to deliver the check face-to-face so you don’t risk losing it.

Lost Or Stolen Cashier’s Check: What To Do

If you lose your check or if it’s stolen, you might be able to cancel it or recoup the money. You may have to pay a fee for the loss and fill out a report for your bank, though. Your bank may also require you to get an indemnity bond, which promises you’ll cover the amount of both checks if they both end up getting cashed.

How Much Does A Cashier’s Check Cost?

The fee for a cashier’s check is usually $8 – $15. Some banks waive the fee for certain account holders. At the time of this writing, these institutions charged the following fees for a cashier’s check:

●      Chase: $10 (free for some account types)

●      Ally Bank: Free

●      Wells Fargo: $10 (The bank also charges an $8 delivery fee for online orders.)

●      Bank of America: $15 (free for Preferred Rewards account holders)

Cashier’s Check Alternatives

There are alternative payment methods, including credit cards, for cashier’s checks. Here’s a quick overview of a few of these methods – specifically, money orders, certified checks, wire transfers and digital payment apps:

●      Money order: Like a cashier’s check, a money order is prepaid. The difference is that a money order usually comes in a lower amount than a cashier’s check – less than $1,000. You can also get a money order at a post office, gas station, convenience store or check-cashing outlet.

●      Certified check: A certified check is a personal check that a bank has noted is backed by sufficient funds. As the consumer, you sign a certified check, while a bank signs a cashier’s check.

●      Wire transfer: A wire transfer allows you to transfer funds electronically from one bank to another securely, whereas a cashier’s check is written from your financial institution to the payee.

●      Digital payment apps and services: Common mobile payment apps and services such as Venmo and PayPal allow you to send and receive money securely on demand through smartphones and other devices. Like a wire transfer, it happens electronically and skips the check writing process altogether.

How To Avoid Cashier’s Check Fraud

While cashier’s checks are less susceptible to fraud than personal checks, you can still open yourself to scams. For example, you may receive what you think is a genuine cashier’s check that turns out to be fraudulent. If you spend the money before the bank knows it’s fraudulent, you could be liable for paying for the check and fees.

To avoid fraud, follow these steps:

●      Make a phone call to the originating bank or credit union of any check you receive.

●      Check for safety features, such as watermarks.

●      Make sure the payee’s name is on the check.

●      Analyze the check amount for accuracy.

Consider waiting a few days before accessing the cash and communicate any suspicions with your bank.

FAQs About Cashier’s Checks

Here are some questions we frequently answer about cashier’s checks.

Why would someone give a cashier's check?

Typically, a payer uses a cashier’s check because the recipient of the payment requires one. People and organizations often prefer a cashier’s check for large payments because the bank guarantees the payment.

What is the difference between a cashier’s check and a regular check?

Personal checks aren’t guaranteed by the bank. If someone writes you a check and doesn’t have enough funds in their checking account to cover the amount, you might not be able to get bank funds to cover the transaction. Cashier’s checks also typically clear much quicker than personal checks.

How do you get a cashier’s check?

Many banks offer cashier’s checks for their clients. It’s possible to get a cashier’s check at a local branch or by ordering one online. Be sure you have enough money in your account to cover the amount of the transaction (including any related fees), and be sure you know the recipient’s name.

What if I lose a cashier’s check?

If you’re the payer, contact the issuing bank and ask about canceling a missing cashier’s check. You’ll have to fill out a report, at minimum. In some cases, you may have to pay a fee or get an indemnity bond that makes you responsible for paying the amount on the lost check if it’s found and cashed.

If you’re the recipient, ask whether the payer will get a replacement check. If you have an indemnity bond, you could present it to the bank.

The Bottom Line: Cashier’s Checks Are Common For Large Purchases

Cashier’s checks are common for bigger purchases, such as down payments on homes or cars. They offer a seller reassurance because they’re covered by the issuing bank and can’t bounce.

When you need a cashier’s check to make a large payment, your steps are simple: Get the payee’s information, ensure you have the funds, visit your financial institution, pay for the check (and fees), and deliver your check to the payee.

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