A check drawn on the bank’s account rather than yours is referred to as a cashier’s check. It is written under the name of the bank and often has a teller’s signature. The cheque must be paid to the payee by the bank. The money required to cover the check from your account is given to the bank by you. A cashier’s check must be obtained from a bank or credit union, either in person or online.
Because of the advantages and safeguards that a cashier’s check provides that you would not get through personal checks or cash payments, using one in some situations makes sense instead of the other. Alternate payment methods include certified check, money order, wire transfer, and social payment apps. Each method of payment has advantages and disadvantages.
You should be aware of how to utilize cashier’s checks, how to obtain one, and what to use in their place if you require a substitute.
Why Pay with a Cashier’s Check?
A cashier’s check is frequently used for big payments when the person receiving the money, known as the payee, wants confidence that the check won’t bounce. As an illustration, you could use a cashier’s check to:
Put money down on a house
pay the mortgage’s closing expenses
purchase a car or boat
Get a plot of land.
To put it another way, it’s not typically utilized for daily spending.
A cashier’s check gives each party to the transaction a certain level of security. Given that the check is being deducted from the bank’s account, the payee is aware that it won’t be cashed. The bank is confident that the check won’t be counterfeit because cashier’s checks typically feature watermarks and require signatures from one or more bank employees.
Additionally, since the check is not drawn from your account, you don’t need to worry about disclosing the payee’s personal checking account information.
Using a cashier’s check has one further benefit for the payee: the money is typically accessible by the following business day. The bank may impose a hold on a large personal check for a number of days to give it time to clear.
Obtaining a Cashier’s Check
You can obtain a cashier’s check in one of three ways: by going to a bank branch, a credit union, or online. Please be aware that ordering a cashier’s check online could take longer than ordering one in person.
You must first confirm the issuer’s requirements for submitting a cashier’s check for each of the three possibilities. Only one of their customers will receive a cashier’s check from many banks and credit unions. If you’re able to obtain a cashier’s check without having an account, you must be prepared to pay the check’s full amount.
The rest is quite easy once you’ve determined which bank or credit union branch you’ll pick up the cashier’s check from and whether you require an account. You simply need to:
Put your research together. You will require the precise payee name—the company or individual you are paying—as well as the precise check amount. In addition, you’ll need a picture ID to prove your identification, as well as any words you wish to write on the check explaining why it’s being written.
Consult a teller. You can obtain a cashier’s check from a teller. Just be prepared to present your ID, the name of the payee, and the amount of the check. You must advise the teller the account from which the money for the check should be drawn if you’re an existing customer of the bank or credit union. (Make certain you have enough money on hand to cover the check.) You must pay the cheque amount in cash if you are not a client.
Pay any check fees that may be due. For cashier’s checks, the majority of banks and credit unions levy a fee. While your bank may charge more or less than that, the fees at some of the biggest banks range from $6 to $10.
If you have a premium checking, savings, or money market account with the bank, you might be eligible for a free cashier’s check.
Online cashier’s checks can also be available via your bank or credit union. If it does, you must log in and choose the account you want to use for the check by visiting its website. The “Order Checks” tab may feature a link to order a cashier’s check online, depending on the institution’s menu structure. To add the payee’s name, address, payment amount, and any notes you wish to provide, follow the menu prompts. The check may be mailed to the address listed on your account, which will take longer than if you pick it up in person and deliver it personally, or it may be routed to a bank or credit union branch where you can pick it up in person.
