How to Properly Cash a Cashier’s Check

A cashier’s check is a secure form of payment issued by a bank, drawing funds directly from the bank’s own account rather than a personal one. The bank essentially guarantees the payment, providing a higher level of security than a personal check, making them a preferred method for large transactions like purchasing a vehicle or making a down payment on a home.

Where to Cash Your Check

The most direct approach is to visit the bank that issued the check. This institution can verify the check’s authenticity immediately, and you typically do not need to hold an account there to cash it.

Another common method involves cashing the check at your own bank or credit union. Having an account at the institution where you cash the check often streamlines the process, though deposited funds may be subject to a temporary hold. Many banks allow mobile deposits through their apps, which can be a convenient way to deposit the check into your account.

Alternatively, some other financial institutions or third-party check cashing services may cash a cashier’s check. These options might be less common or incur higher fees compared to cashing at a bank, especially if you are not a customer. They may also have stricter verification requirements.

What You Need to Cash a Check

Cashing a cashier’s check requires presenting specific documents and following certain procedures. You will need valid government-issued photo identification, such as a driver’s license, state ID card, or passport. The name on your identification must precisely match the payee name printed on the check.

Proper endorsement is also a necessary step before cashing or depositing the check. You must sign the back of the check exactly as your name appears on the front. If depositing the check into your bank account, you might also be asked for your account number to ensure the funds are correctly routed.

When depositing a check via mobile app, you will typically endorse the back by signing your name and writing “For Mobile Deposit Only.” After endorsing, you will photograph both sides of the check using your bank’s mobile application.

Understanding Fund Availability and Fees

Banks may still place a hold on deposited funds to verify authenticity. This hold period typically ranges from one to five business days, especially for large amounts or new accounts. Federal regulations, such as Regulation CC, govern these hold periods, requiring banks to make funds available within a reasonable timeframe.

For cashier’s checks deposited in person to an existing account, the first portion of the deposit, such as $6,725, might be available the next business day, with any excess funds potentially held longer, possibly up to nine business days. If a bank suspects a check is fraudulent, they can extend the hold or even charge back the funds if the check proves to be uncollectible.

Fees for cashing a cashier’s check can vary depending on where you choose to cash it. Cashing a check at a bank where you do not hold an account may incur a fee, often ranging from $5 to $15. Third-party check cashing services generally charge a percentage of the check amount, which can be higher, typically between 1% and 4% of the check’s value. Always obtain a receipt for your transaction, regardless of where you cash the check, for your records.