How to Get a Cashier’s Check: The Entire Process
Master the essential steps to obtain, use, and manage a cashier's check for secure and reliable payments.
A cashier’s check is a payment instrument issued and guaranteed by a bank, drawing funds from the bank’s own account rather than an individual’s personal account. This makes it a secure form of payment, as the bank verifies and guarantees the availability of funds. Cashier’s checks are commonly used for large purchases, such as down payments on a car or real estate transactions, or whenever a personal check might not be accepted due to the need for guaranteed funds. They provide assurance to the recipient that the payment will clear, unlike a personal check which can bounce.
Preparation for Obtaining One
To obtain a cashier’s check, visit a bank or credit union, as these are the institutions that issue them. While some banks may offer online ordering, an in-person visit is often required to complete the process. Before arriving, gather the exact amount the check needs to be written for, as this cannot be changed once issued. You will also need the full, legal name of the payee—the person or entity receiving the funds—since blank cashier’s checks are not issued. Any memo details for the check’s purpose should also be prepared.
A government-issued photo identification, such as a driver’s license or passport, is necessary to verify your identity. This is a standard security measure for financial transactions. You must also have sufficient funds available to cover the check’s full amount, plus any associated fees. These funds can be withdrawn directly from your checking or savings account, or you can pay with cash.
Financial institutions charge a fee for issuing a cashier’s check, which can range from approximately $5 to $15. The average cost across major banks is about $9.10. It is advisable to inquire about the specific fee beforehand, as some banks might waive it for certain account types or relationships.
The Issuance Process
At your financial institution, you will typically approach a teller or customer service representative to initiate the request for a cashier’s check. You will provide the previously gathered information, including the exact check amount and the payee’s full legal name. If you are paying from an account, the teller will access your account to confirm the availability of funds.
The bank then immediately withdraws or freezes the full amount from your account. If paying with cash, you will present the cash at this time. The financial institution’s representative will then prepare the cashier’s check, ensuring all details are correctly printed and the check is signed by a bank official.
Once the check is prepared, you will receive the completed cashier’s check along with a receipt. It is important to keep this receipt as proof of payment and for tracking purposes, should any issues arise later.
Verifying and Using a Cashier’s Check
After a cashier’s check has been issued, it is important to examine it for accuracy. Verify that the check displays the correct amount, the payee’s name is spelled accurately, and all bank details appear legitimate. Always confirm the issuing bank by contacting them directly using a phone number obtained from an independent source, not one printed on the check itself, to avoid potential fraud.
Cashier’s checks incorporate various security features to deter counterfeiting, such as watermarks, security threads, microprinting, and color-shifting ink. Inspect the check carefully for these features and look for any signs of tampering, alterations, or poor print quality, which could indicate a fake. The payee’s name should also be pre-printed on the check by the bank.
When depositing a cashier’s check, the recipient endorses the back of the check by signing their name, similar to a personal check. Funds from a cashier’s check are generally available relatively quickly, often within one business day after deposit, though some banks may place holds on large amounts or for new accounts to ensure proper verification. However, it is prudent to confirm with your financial institution that the funds have fully cleared before assuming they are accessible.
Handling Lost or Stolen Checks
If a cashier’s check is lost or stolen, immediate action is necessary by contacting the issuing bank. You will likely need to file a “declaration of loss” statement, which is a legal claim stating that you no longer possess the check. This declaration is typically required before any replacement or refund process can begin.
The process for replacing a lost or stolen cashier’s check can be complex due to the check’s guaranteed nature. Banks often require a waiting period, commonly 90 days from the check’s issue date or the filing of the declaration of loss, before a replacement check or refund can be issued. This waiting period allows time for the original check to potentially surface or be presented for payment.
In many cases, the bank may require you to obtain an indemnity bond before reissuing the funds. An indemnity bond serves as an insurance policy that protects the bank from financial loss if the original lost check is later found and cashed. The cost of this bond is typically a small percentage of the check’s value, often 1% to 5%, and is borne by the person requesting the replacement.