How Much Does a Cashier’s Check Cost?

A cashier’s check is a secure payment instrument drawn against the funds of the issuing financial institution, not an individual’s personal account. This guarantees payment, making it highly reliable. People often choose cashier’s checks for significant transactions, such as real estate or vehicle sales, where the recipient requires assurance of funds. This guaranteed nature mitigates risks associated with personal checks that could bounce.

Understanding Cashier’s Check Costs

The cost of a cashier’s check varies by financial institution and customer relationship. Some banks and credit unions charge a fee, while others offer the service for free, especially to account holders. Fees typically range from $5 to $20, reflecting the administrative processing and the guarantee provided by the institution.

For non-account holders, the fee is generally higher, or the service may not be available. Some premium checking or savings accounts, or those with a high balance, often include free cashier’s checks as a benefit. Financial institutions may also waive fees for specific transactions, such as closing a mortgage with them.

If a cashier’s check is lost, stolen, or damaged, obtaining a replacement can incur an additional fee, similar to the original issuance cost. Institutions typically require the original purchaser to submit a signed affidavit of loss and may impose a waiting period before reissuing the funds. This process ensures the original check cannot be cashed if it eventually resurfaces. Specific policies and replacement costs are determined by each financial institution.

Where to Get a Cashier’s Check

Cashier’s checks are primarily issued by banks and credit unions, as these institutions guarantee funds directly from their own accounts. To obtain one, you generally need to visit a branch location in person. This ability to issue a check drawn on the institution’s own funds distinguishes a cashier’s check from other payment methods.

While some check-cashing services or money transfer agents offer money orders, these are not the same as cashier’s checks. Money orders are typically for smaller amounts and are not guaranteed by the issuing institution like a cashier’s check. Only banks and credit unions can provide true cashier’s checks. Therefore, your local bank or credit union branch is the most reliable place to secure this type of payment.

What You Need to Obtain a Cashier’s Check

To obtain a cashier’s check, you will need to provide specific information and funds. The institution requires sufficient funds to cover the exact amount of the check, either by withdrawing from your existing account or by providing cash. This ensures the bank has the necessary capital for the guaranteed payment.

You will also need to present valid government-issued photo identification, such as a driver’s license or passport, to verify your identity. This is a standard security measure to prevent fraud and ensure the check is issued to the correct individual. Additionally, you must provide the full legal name of the recipient, as this information will be printed directly on the check. The exact amount of the check must be specified clearly to the teller.

Alternatives to Cashier’s Checks

Several alternative payment methods offer varying degrees of security and convenience. Money orders, available at post offices, retail stores, and some financial institutions, are suitable for smaller payments and offer a paper trail. They are generally inexpensive, with fees typically under $2, but are not guaranteed by a bank’s funds like a cashier’s check.

Certified checks provide another option, where a personal check is guaranteed by the bank, confirming sufficient funds are available in the issuer’s account when certified. The bank sets aside the funds, ensuring the check will clear. Wire transfers allow for immediate electronic movement of funds directly from one bank account to another. Wire transfers are typically used for time-sensitive transactions and can have higher fees, often ranging from $20 to $35 for domestic transfers, but they offer the fastest method of funds transfer.