As online payment platforms like Venmo and Zelle become ubiquitous, fewer people use checks in their day-to-day lives.
But large purchases may require you to provide a cashier’s check. If you’ve never had to use one, you may not know what it is.
A cashier’s check is a secured payment method. Like a regular check, only the person whose name is on it can cash it, but, unlike a normal check, the bank itself guarantees that the funds promised by the check will be available when the person goes to cash or deposit it.
What is a cashier’s check?
A cashier’s check is a financial document issued directly by a banking institution that guarantees payment.
A normal check issued by a person doesn’t always go through; there aren’t always enough funds in the bank account to cover what the check promises.
For example, imagine you’re making a down payment on your first home and need $20,000. You write a regular check and forget that an automatic bill payment happens the next day. The check bounces and your mortgage closing grinds to a halt.
A cashier’s check guarantees that the funds are available.
“The bank is saying they vouch for the funds,” said Dustin Suttle, CFP and managing member at Suttle Crossland Wealth Advisors in Scottsdale, Ariz.
There is usually no limit on the amount for a cashier’s check, but this can depend on the issuing institution.
How a cashier’s check works
You can’t write a cashier’s check yourself, you have to request one from your banking provider.
You typically have to visit your bank or credit union in person, wherever you have a checking account, and bring a form of ID, like a driver’s license.
Ask for a cashier’s check at the branch. You’ll likely need to show your ID and fill out a form stating who is receiving the funds, the total amount and any note you want to put on the cashier’s check.
You may need to pay a fee, which can cost up to $20 (more on that below).
Once the recipient goes to cash it, the funds are typically available sooner than they would be with a personal check. As a cashier’s check is guaranteed by the issuing bank, the bank where it’s being deposited needs less time to verify the funds.
Where to get a cashiers check
You can get a cashier’s check from your bank or credit union. While cashier’s checks are traditionally only available in person, more financial institutions, including some of the best online saving account providers, are starting to allow you to order one online, by mobile app and over the phone.
If your bank allows it, you could log into your account or call customer service and ask for a cashier’s check. You’ll need to provide all the same information, plus the recipient’s address. Note that you’ll likely have to pay a delivery fee and the check may take a few days to reach the recipient through the mail.
Sometimes, you can get a cashier’s check even if you’re not a current customer. You can visit a branch or call to inquire whether they issue cashier’s checks for non-customers and if they charge an additional fee for this service.
Why you may need a cashiers check
If you’re sending a birthday check to a niece or paying a contractor, a personal check may be sufficient. However, if you’re buying a house and need to provide a down payment, the mortgage lender may require a cashier’s check instead of a personal check or wire transfer.
How to deposit a cashier’s check
You can deposit a cashier’s check by visiting your local bank, going to an ATM or using mobile deposit. You can deposit it into any of your accounts, like your high-yield savings. There is almost never a fee for depositing one with a banking institution where you have an account.
You may run into a large-deposit hold if you are collecting a sizable amount of cash. According to Regulation CC, the bank must make up to $5,000 of the cashier’s check available within one business day. Any amount over $5,000 can be subject to a hold, to give the banks time to transfer the funds.
“But most of the time you can ask the bank to verify the funds with the paying bank and get the funds cleared sooner,” Suttle said.
Check-cashing stores like Speedy Cash and ACE Cash Express could also cash you out, but they will charge a fee.
How much is a cashier’s check?
Not all banks charge a fee for a cashier’s check, but most do. The cost typically ranges between $5 and $20. Below is a sampling of popular banks and how much they charge.
You can search online, look at your bank’s deposit agreement, visit a branch or contact the customer service department to see how much a cashier’s check at your bank will cost.
What if my cashier’s check is lost or ruined?
If the cashier’s check is lost or damaged, you can get a stop payment and reissue the check. There will usually be a fee to cancel the check. You will also have to purchase an indemnity bond in case the check is deposited after you have reported it missing. The cost of the indemnity bond depends on the insurance company you buy it from.
Banks may require that you wait 30 days or more before they will replace the check. If you mail a cashier’s check, make sure it is sent securely.
Cashier’s check vs. certified check
Cashier’s checks and certified checks are both more secure than a regular, personal check, but there are differences by degrees.
Cashier’s check vs. money order
A money order is also a guaranteed form of payment.
While you can only get a cashier’s check from your banking provider, you can get money orders from third-party places like the post office, grocery store, convenience store or drugstore.
Money orders usually have lower amount limits than cashier’s checks, often around $1,000.
To buy a money order, you can use a debit card or a personal check. Some institutions will let you use a credit card to buy a money order, though the credit card company may treat this as a cash advance and charge you interest.
Frequently asked questions (FAQs)
There isn’t a standard expiration date for cashier’s checks, but the valid timer period can range between 60 and 180 days. If it expired, you can contact the individual or organization that issued it and request a new one.
You can contact your bank and inquire about the status of the cashier’s check.
Cashier’s checks can be deposited on the same day in which they are received. They’re typically able to be processed more quickly than regular checks, which is another reason they’re popular.
Yes, some banks will let you order a cashier’s check online so you don’t have to visit the bank in person. They can mail it to you or to the intended recipient.
This method may come with more fees because you will also be responsible for postage. For example, Capital One charges $10 for one purchased in person and double that for cashier’s checks purchased online to cover processing and delivery.
