What is a Cashier’s Check?
A cashier’s check is a check drawn on a bank’s own funds, and is guaranteed by the bank. It is signed by a cashier or other authorized bank employee who makes sure that the bank has the necessary funds to cover the check before issuing it. Obtaining a cashier’s check requires the money to be obtained and kept in the bank’s account before the check is issued. Cashier’s checks are usually used when transacting large payments, such as for car, house or other large purchases.
Benefits of a Cashier’s Check
Cashier’s checks can be safer than other forms of payment when purchasing goods or services such as a house or a car, especially when dealing with internationally located sellers. This is because cashier’s checks rarely bounce since the funds are already available. Other advantages of using a cashier’s check include:
- The Seller can have confidence that the payment is genuine and the funds are available.
- Cashier’s checks are often accepted in lieu of other forms of payment as they are seen as more reliable.
- Convenient for large payments, as buyers don’t need to physically deliver cash.
Drawbacks of a Cashier’s Check
Cashier’s checks can come with a few drawbacks, including the following:
- Cost: Cashier’s checks have a fee attached, typically from $10-$20.
- Delayed processing: it usually takes longer to process payments with a cashier’s check, as opposed to other forms of payment, such as credit cards.
- Risk of fraud: although cashier’s checks are generally considered safe, they are still vulnerable to fraud, as scammers can create fraudulent documents or promise payments that never actually arrive.
Cashier’s checks can be beneficial when making large payments due to the assurance that the funds are available. However, buyers must still be aware that there are still risks involved. In order to minimize the risk of fraud, buyers should take care to obtain a reputable cashier’s check from a recognized bank, and have the seller verify its authenticity before proceeding with the purchase. Cashier’s Check Reviews: Gathering Important Information
Cashier’s checks are a trusted way to guarantee the amount of money being sent. These checks are a more secure method than money orders and can be found in most banks and financial institutions. Because cashier’s checks are seen as more secure, they are subject to more fees than a money order. Before proceeding to purchase cashier’s checks, it’s important to know all important information about them, including the fees, to make sure it’s a more cost-effective option.
What to Expect from a Cashier’s Check
A cashier’s check is written from the account of the financial institution, not the individual. This is advantageous because it’s more secure than money orders, as the issuer guarantees the funds and has verified both the amount and the payee. These checks arrive with the amount in the memo and usually the payee’s name printed on the check. Once the check is written, the funds are immediately withdrawn from the issuer’s account and won’t be refunded if the check is lost or stolen.
The fees associated with cashier’s checks can vary between financial institutions, as well as the amount considers as a cashier’s check. In non-bank financial institutions, these fees are even higher. Most banks will issue cashier’s checks for up to a certain amount of money without charging a fee. That amount varies by each bank, so it’s important to be aware of the limits and the fees for bigger amounts.
Where to Find Cashier’s Checks
Once individuals know the fees and limits associated with issuing a cashier’s check, it’s necessary to figure out where to purchase the check. Many banks and financial institutions offer cashier’s checks, including big-name banks like Bank of America, Wells Fargo, and Citibank. It’s best to check the rules of each institution before going in or mailing a check.
Alternatives to Cashier’s Checks
If cashier’s checks aren’t the right choice, there are other options to sending money. A personal check is much cheaper than a cashier’s check and can guarantee the funds depending on the issuer’s creditworthiness. A wire transfer can also have a variety of costs involved, but it’s faster than sending a check and the fee is unlikely more than a cashier’s check. Money orders are a great choice if the amount is small, and if individuals don’t have a bank account, and it’s the most secure payment option.
Cashier’s checks are a great way to make sure the funds from a payment are secure, but individuals should make sure to do their research on the fees and the locations before buying one. This way, suitable alternative payment solutions can be identified too. Make sure to check with the issuing financial institution to determine all the aspects associated with a cashier’s check.