How Much Does a Cashier’s Check Cost?
Navigate the costs and requirements for obtaining a cashier's check. Understand the fees and process for this secure payment method.
A cashier’s check is a secure form of payment issued directly by a financial institution. Unlike a personal check, funds are drawn from the bank’s own account, guaranteeing their availability. This makes it a reliable method for transactions requiring assured funds.
Understanding Cashier’s Checks
A cashier’s check is a payment instrument issued and guaranteed by a bank or credit union. Unlike a personal check, which draws funds from an individual’s account and carries the risk of insufficient funds, a cashier’s check is drawn against the financial institution’s own funds. This assurance means the check will not “bounce” once issued. Financial institutions often include security features, such as watermarks or dual signatures, to prevent counterfeiting.
These checks are commonly used for large purchases or transactions where a personal check might not be accepted, or carrying cash is impractical. Cashier’s checks are frequently required for real estate transactions, vehicle purchases, or significant security deposits. They offer peace of mind to the recipient and typically clear more quickly than personal checks.
Where to Obtain a Cashier’s Check
Cashier’s checks are exclusively issued by banks and credit unions. Most individuals obtain these checks from a financial institution where they hold an account, such as a checking or savings account. The funds for the cashier’s check, along with any applicable fees, are typically debited directly from the customer’s account at the time of issuance.
While many financial institutions primarily offer cashier’s checks to their existing customers, some may provide them to non-account holders. If a bank or credit union issues a cashier’s check to a non-customer, it often requires payment in cash for the full amount of the check plus any fees. It is advisable for non-customers to contact the institution beforehand to confirm their policy and requirements.
The Cost of a Cashier’s Check
The cost of a cashier’s check can vary among financial institutions, typically ranging from a few dollars to about $15. Many traditional banks often charge around $10 to $15, while credit unions may offer lower fees, sometimes as little as $1 to $7 per check.
Several factors influence the fee. Account holders often pay less, or may receive cashier’s checks for free, especially with certain account types. Premium checking accounts or those with specific balance requirements might waive these fees. Non-account holders typically face higher charges.
To reduce or avoid fees, individuals can inquire about account benefits that include free cashier’s checks. Maintaining a minimum balance in a checking account or participating in loyalty programs can sometimes lead to fee waivers. Some online banks also offer cashier’s checks at no charge to their account holders.
Information Needed to Get a Cashier’s Check
When requesting a cashier’s check, individuals must provide specific details. The exact amount of the check is necessary, as the bank will immediately withdraw or freeze these funds from your account. It is also crucial to provide the full legal name of the payee, the person or entity who will receive the check.
Financial institutions require personal identification, such as a government-issued photo ID, to verify your identity. You must also have sufficient funds in your account to cover the check amount and any associated fees.