How to Correctly Deposit a Cashier’s Check

Understanding Cashier’s Checks

A cashier’s check is a secure payment drawn from the bank’s own funds, not an individual’s account. This guarantees the funds, making it a reliable, low-risk payment for significant transactions.

A financial institution issues cashier’s checks to a designated recipient after a customer purchases them. They are commonly used for large purchases, such as real estate or vehicle transactions, where guaranteed funds are required.

Before depositing, verify the check’s authenticity to mitigate fraud risks. Authentic checks often feature security elements like watermarks, security threads, and microprinting. Contact the issuing bank directly to confirm validity, using a phone number from an independent source like their official website or a public directory, not from the check itself.

Preparing for Your Deposit

Endorse the check correctly on the back by signing your name exactly as it appears on the payee line.

For added security, write “For Deposit Only” and your account number below your signature. This restricts the check to deposit into your specified account, protecting funds if lost or stolen.

Financial institutions require proper identification for check deposits. Present a valid, government-issued photo ID, such as a driver’s license or state ID. Having your account number ready will expedite the process.

Depositing Your Check

Once your cashier’s check is endorsed and identification is ready, you can deposit funds. Endorsement is required for in-person, ATM, and mobile deposits.

To deposit in person at a bank branch, present the endorsed check and valid identification to a teller. The teller will process the transaction and often provide a deposit receipt.

For ATM deposits, insert your debit card, enter your PIN, select the deposit option, and insert the endorsed check. The ATM will usually provide a receipt, though funds may not be immediately available.

Mobile deposit is available through your bank’s smartphone application. Sign into your banking app, select the mobile deposit feature, and use your phone’s camera to photograph the front and back of the endorsed check. Some banks may require “For Mobile Deposit Only” on the endorsement.

You can mail the endorsed check to your bank using a deposit slip. Send it to your bank’s specified mailing address for deposits, found on their website or your deposit slips. This is generally the slowest method for funds to become available.

Accessing Your Funds

After depositing a cashier’s check, know when funds become available. Financial institutions operate under specific funds availability policies, governed by federal regulations. Banks often place a temporary hold on funds.

If deposited in person to a bank employee, cashier’s check funds must be available by the next business day after deposit. However, banks may place a hold on the entire amount if they have reasonable cause to believe the check is uncollectible.

For larger deposits, or if the total amount of cashier’s checks deposited in one day exceeds $6,725, the bank can place a hold on the amount over $6,725, with the remainder available on the ninth business day. New accounts (open fewer than 30 days) might also experience extended hold times. Always check your account balance and transaction history through online banking or your bank’s mobile app to monitor when funds are fully cleared and available.