What Is a Cashier's Check? When and How to Use One
A cashier's check (also called an official check) is a check drawn on the bank's own funds, signed by a bank representative, and guaranteed by the issuing bank. Because the bank guarantees the funds, cashier's checks are more secure than personal checks for large transactions.
How does a cashier's check work?
When you request a cashier's check, the bank withdraws the specified amount from your account (or takes it in cash) and issues a check backed by the bank's own funds. The recipient can be confident the funds are available. This makes cashier's checks preferred for large purchases like home down payments or vehicle purchases.
How to get a cashier's check
Visit your bank's branch or, in some cases, request one online. Provide the payee name and exact amount. Your account will be debited for the amount plus any applicable fee. Fees typically range from $5 to $15, though some accounts have them waived. [Verify fees with your specific bank.]
Cashier's check vs. certified check vs. money order
Cashier's check: Guaranteed by the bank's funds. Certified check: A personal check the bank certifies as having sufficient funds; drawn on your account. Money order: Purchased for a fixed amount; often used for smaller amounts or when no bank account is available.
Frequently Asked Questions
Sources
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC) — Fake Check Scams
Pro tip: Bookmark this guide and review it before opening a new bank account to ensure you understand all terms and conditions.