How to Properly Use a Cashier’s Check

A cashier’s check is a financial instrument issued and guaranteed by a bank or credit union, rather than drawn directly from an individual’s personal account. The funds are verified and set aside by the financial institution, providing high security. Cashier’s checks are commonly utilized for significant transactions, such as real estate purchases or vehicle acquisitions, where the recipient requires assurance that the payment will not be returned unpaid. The bank’s guarantee minimizes risk compared to personal checks, making it a reliable method for large-sum payments.

Getting Your Cashier’s Check

Obtaining a cashier’s check begins at your bank or credit union, though some institutions may issue them to non-customers, often requiring cash payment for the full amount. You will need to present a valid government-issued photo identification, such as a driver’s license. The funds for the check, plus any applicable fees, will be withdrawn directly from your account or collected in cash. Fees for cashier’s checks are typically $10 to $15, though some financial institutions may waive these charges for certain account types.

When requesting the check, you must provide the exact, full legal name of the person or entity who will receive the payment, known as the payee. The precise numerical amount of the check is also required. An optional memo line can be used to specify the purpose of the payment. The bank will then print the check with all the specified details, and the funds will be immediately removed from your account or frozen to cover the check’s value.

Delivering Your Cashier’s Check

Once you have obtained your cashier’s check, make a photocopy or take a clear photograph of both the front and back of the completed check before delivering it. This personal record serves as proof of payment and contains information, such as the check number and amount, useful for tracking or in case of any future disputes. This step ensures you retain a reference without needing the original document.

Delivery methods for a cashier’s check vary based on the transaction and your relationship with the payee. For local transactions, handing the check over in person is direct and secure. When mailing the check, especially for substantial amounts, consider using secure postal services like certified mail with tracking. This provides a verifiable delivery record.

Managing Your Cashier’s Check After Issuance

If a cashier’s check is lost or stolen after it has been issued, contact the issuing bank immediately. Stopping payment on a cashier’s check is complex due to its guaranteed nature, as the bank has already set aside the funds. You will likely be required to complete a “declaration of loss” form, attesting that the check is missing.

For reissuance, banks often require the purchase of an indemnity bond, which is a type of insurance protecting the bank if the original check is eventually presented for payment. A waiting period, usually 30 to 90 days, is imposed before a replacement check or refund is issued, unless an indemnity bond is secured. If a cashier’s check you purchased is no longer needed, you can deposit it back into your own bank account. The funds will be returned to your account balance.

For recipients of a cashier’s check, verifying its legitimacy is important to prevent fraud. Do not rely on contact information printed directly on the check, as this could be part of a scam. Instead, independently look up the official phone number for the issuing bank and contact them directly. When speaking with the bank, provide the check number, the exact amount, and the date of issuance. Legitimate cashier’s checks also feature security elements like watermarks, microprinting, and security threads, which can be inspected for signs of counterfeiting.