What is a Cashier's Check?
Cashier's checks are a form of payment that can be provided by a credit union or bank to recipients who meet certain criteria. This check is guaranteed to be paid. Cashier's checks may look like personal checks, but they are not drawn from the account of the recipient.
The funds of the financial institution back the cashier’s check. It means that funds are always available and there are usually security features. The check will not bounce. Do not confuse this with a wire or money transfer.
Cashier's checks are more expensive than money orders, but they are also considered to be safer and can be purchased in larger dollar amounts.
How to get a Cashier's Check
It may seem simple, but applying for and receiving the cashier's checks can be complicated. To apply for this type of check and to receive it, follow the steps below.
Be sure to have enough money
Cash, debit cards or checks must be used to pay for the exact amount of the cashier's cheque. Credit cards cannot be used to purchase official checks such as cashier's check.
You must have sufficient money to obtain the check. The issuer of the check may hold the funds for a period until the check is cleared.
Make sure you understand the charges at the company that you choose. The majority of financial institutions charge an issue fee on cashier's checks. The amount and institution of the check can affect the fee. They are usually small fees, ranging between $5 and $15. However, higher fees can apply for larger amounts.
Where will you get your cashier's checks?
Cashier's checks are issued by a variety of places. Cashier's checks are not as easy to obtain at the post office. Understand your needs, and what your chosen institution can offer.
Cashier's check are available from both traditional and online banks. Bank of America and Wells Fargo are examples of FDIC-member U.S. bank branches where you can obtain a cashier’s check either online or in a branch. They are the most common places to start because almost everyone has a bank and can benefit from their rewards program.
Credit unions can offer cashier’s checks similar to banks. This is a good option for those who have a high credit rating.
Cashier's check services are also offered by some savings and loan associations. Brokerage firms specialize in cashier’s checks used for the sale of securities. You might find what you are looking for.
Cashier's check can also be found in the money service industry. Cashier's check payments are also available from these businesses such as Western Union and MoneyGram.
Documentation and account information
Begin with your name. You can use your own name, or the name (or name) of the entity that is providing the funds. Some institutions may also ask for a reason to be included on the check for tax purposes.
Be prepared to show identification. It is usually a government-issued ID with a photo, like a passport or driver's licence.
Last but not least, you will need to have your payment method ready. The cashier's checks must be paid in advance. If funds are available, some banks will accept personal checks. Do some research on the payment options available at your institution.
Make sure you know who you are paying and what you are paying for.
Re-check all the information that you provide for the cashier’s check. Cashier's check security is a requirement for institutions.
Remember all the information that you used to submit your form in case you want to check it later.
Ask for a cashier's cheque at your preferred institution
Once you have submitted the payment and information, visit your chosen institution to pick up your cashier's checks. The process may vary based on the institution you choose. Please read below to learn more about these receiving options.
Where can I get a cashier’s check?
You can receive a check at three different places: a credit union, a bank or online. The basic steps are the same for all institutions. However, there are a few nuances.
How do you get a cashier’s check at a bank
You must ask for a cashier’s check at a bank in person. Bring all the relevant information and information about your situation. When you ask for a cashier's cheque, the teller will give it to you. The check will have the name of the bank on it.
How do you get a cashier’s check at a credit Union?
The credit union process is similar to that of a bank. You can research your credit union by visiting their website or by calling them beforehand. Bring all the necessary information to receive your cashier’s check as quickly as possible.
How do you get a cashier’s check online?
Online applications vary across institutions but are attractive because they can be accessed by more people.
You may be able to get a cashier’s check from some banks or credit unions through their websites, but others will require you to visit them in person or make a telephone call. Some online-only banks do not provide cashier's check services.
What are the advantages of using a Cashier's Check?
What are the advantages of a cashier’s check now that you know where to find it and how to use it? Why use these checks to pay?
Cashier's checks will never bounce
This type of check is not liable to bounce, unlike a personal check when making a large purchase. You can buy a boat, car, or put down a deposit on a home without having to worry about your check being invalid.
Quick access to funds
The funds are usually available immediately after the check has been cashed or deposited (usually within one business day).
The financial institution verifies that the cashier's checks are authentic and available before releasing the funds to their recipient.
What are the disadvantages of cashier’s checks?
The cashier's checks have a few downsides.
The majority of financial institutions charge an issue fee on cashier's checks. The amount and institution of the check can affect the fee. Fees range between $5 and $15 but can be more for larger amounts. There are still a few more.
Fees on cashier’s checks are a common practice at banks and credit unions. These fees can quickly add up, especially if they are used frequently.
Understanding the fees and policies of your institution is important when researching cashier's checks.
Scams are possible
Check scams can be found everywhere. Human error will cause problems in every institution. It is important to know that cashier's check can be forged and counterfeited.
If you are the person receiving payment in this manner, then this is not something to be concerned about. You could receive a piece of worthless paper.
What are some tips to use cashier's checks safely?
Due to the risk of fraud, there are many security measures in place for accessing and using a cashier’s check. As the owner of a cashier's check, there are a few things you can do to ensure that it is as secure as possible.
Keep your check in a secure location
Your check should be kept safe in a secure place to avoid it being stolen, lost or damaged. The final step in security is your endorsement. Only endorse the check when you are ready for it to be used.
Use the check quickly
Cashier's check expires after 90 to 120 days. To avoid any complications, make sure you use or deposit the check before it expires.
Do not provide unnecessary personal information
Be careful when using the cashier’s check for payment. Do not provide any personal details that could be used to commit fraud or identity theft.
Beware of other scams that involve cashier's check, including requests for partial refunds or overpayments. Verify the authenticity of a check before you accept or cash it.
If you lose or have your check stolen, inform your lender immediately. The loaner may be able stop the payment of the check, and issue a new one.
What are alternatives to cashier’s checks?
Cashier's checks are great, but there are other payment options that have similar benefits.
Orders for Money
You can also use money orders as an alternative payment method to cashier's check. Money orders, like cashier's check, are a safe form of payment if a personal cheque or cash isn't convenient or acceptable.
Money orders are a good option if you don't want to spend your money on big-ticket items. Money orders are used for smaller transactions. A money order can be obtained in a similar way to a cashier’s check.
- Certified checks
You can also use certified checks as a secure alternative to cashier’s checks. A certified check refers to a personal check that has been certified by the bank or credit union issuing it. You must write a personal cheque for the amount that you require and then bring it to your credit union or bank to be certified.
The guarantee level is one of the major differences between cashier's check and certified checks.
Cashier's checks are guaranteed by the institution backing them, not the bank or credit union that issued the check.
How do you use a Cashier's Check?
Cashier's check are backed up by the bank and can be an important tool in your personal finance. Cashier's checks are used to pay for large purchases because of their high dollar limits.
Real estate is another use of this tool. Cashier's check are used to make a down payment for a home. This can be used to pay rent or bills. Here are a few other ways you can use your cashier's checks.