How Long Does It Take to Cash a Cashier’s Check?

A cashier’s check is a secure payment instrument issued by a financial institution, such as a bank or credit union. Unlike a personal check, which draws funds directly from an individual’s account, a cashier’s check is backed by the bank’s own funds. This makes it a guaranteed form of payment, often preferred for high-value transactions. Individuals commonly use cashier’s checks for purposes like purchasing real estate or vehicles, paying security deposits, or settling significant business deals.

Cashier’s Check Validity and Expiration

Cashier’s checks do not have a hard expiration date, but they can become “stale-dated” after a period, typically 90 days to one year, depending on the issuing bank’s policy. Even if stale-dated, the underlying funds are guaranteed by the issuing bank.

Banks may require additional verification for very old checks to ensure they have not been paid and to mitigate fraud risks. If you possess a stale-dated cashier’s check, contacting the issuing bank directly for guidance on its validity and reissuance procedures is advisable.

Standard Funds Availability After Deposit

Funds from a cashier’s check are generally available the next business day after deposit, as mandated by the federal Expedited Funds Availability Act (Regulation CC). This regulation sets specific timeframes for banks to make funds available to customers.

For next-day availability, deposits are typically made in person to a bank employee. “Available” means you can withdraw the funds in cash or use them for transactions. If the deposit is made at an ATM, especially one not owned by your bank, funds might be available on the second business day. This rapid availability reflects the guaranteed nature of cashier’s checks.

Situations Leading to Extended Holds

While cashier’s checks generally offer next-day availability, banks can place extended holds on funds under specific circumstances, as permitted by Regulation CC. One common reason is large deposit amounts. If the total amount of checks deposited in a single day exceeds $6,725, the bank may hold the amount over this threshold for up to nine business days.

Other reasons for extended holds include deposits to new accounts (opened for 30 days or less), accounts repeatedly overdrawn within the past six months, or if the bank has reasonable doubt about the check’s collectibility. When a bank places an extended hold, it is required to notify the customer, explaining the reason for the hold and indicating when the funds will become available.

Securely Handling and Cashing Your Check

To handle and cash a cashier’s check securely, consider these steps. Depositing the check into your own bank account is generally recommended, as your bank can help resolve any issues. Before depositing, verify the check’s authenticity by contacting the issuing bank directly. Use a phone number from the bank’s official website or a reliable directory, not one printed on the check, as this could be a scam.

Always obtain and keep a receipt for your deposit. Be cautious of overpayment scams, where a sender provides a cashier’s check for more than the agreed amount and asks you to return the excess. Never send money back from an overpayment, as the original check may be fraudulent, and you could be held responsible for the entire amount. Endorse the check by signing the back as instructed by your bank. Have proper identification ready, such as a government-issued photo ID, as this is typically required for cashing or depositing checks.