How to Correctly Write a Cashier’s Check

A cashier’s check is a secure form of payment issued by a bank or credit union, drawn on the institution’s own funds rather than an individual’s account. This type of check is often used for significant transactions, such as purchasing a vehicle or making a down payment on a home, where guaranteed funds are required.

Providing Details for Issuance

When requesting a cashier’s check, you must provide your financial institution with precise details for the payment. This includes the full, accurate legal name of the payee. You also need to specify the exact amount of the payment, ensuring both the numerical and written amounts are correct. Any specific memo or note, such as an account number or purpose of payment, should be clearly communicated.

Accuracy in providing this information is important because the bank prints these details directly onto the check. Discrepancies in the payee’s name or the amount could lead to delays or rejection of the payment by the recipient. Funds for the check, along with any applicable fees, are withdrawn immediately from your account when the check is issued. Banks charge a small fee for issuing a cashier’s check.

Reviewing the Issued Check

After your financial institution issues the cashier’s check, review it for accuracy and authenticity. Carefully check that the payee’s name is spelled correctly and matches the intended recipient. Verify that the numerical amount and the written amount on the check are identical and accurate. Confirm the date of issuance is correct.

Examine the check for the bank’s official signature or stamp, which confirms its legitimacy. Look for security features embedded in the check paper, such as watermarks, microprinting, and security threads, which are designed to deter counterfeiting. These features help ensure the check is genuine and has not been tampered with.

Handling and Delivery

Once the cashier’s check has been verified, proper handling ensures its safe delivery to the intended recipient. Keep the check in a secure location to prevent loss or damage, as stopping payment on a lost or stolen cashier’s check can be a complex and lengthy process due to the bank’s guarantee of funds. When delivering the check, consider using secure methods like in-person delivery or certified mail with tracking and a signature requirement.

Maintaining records of the transaction is an important step. Make a photocopy of the front and back of the issued cashier’s check before delivery. Retain the receipt provided by the bank, as this document serves as proof of purchase and can be helpful for tracking the check or resolving any potential issues. Banks retain records of cashier’s checks for a minimum of five years.