Is There a Fee for a Cashier’s Check?
Is there a fee for a cashier's check? Get clear answers on typical costs, factors influencing them, and the steps to obtain one.
A cashier’s check is a secure payment instrument issued and guaranteed by a financial institution, such as a bank or credit union. Unlike a personal check, which draws funds from an individual’s account, a cashier’s check is drawn from the institution’s own funds. While recognized for their reliability in transactions like large purchases, cashier’s checks typically involve a fee.
Understanding Cashier’s Check Fees
Fees for cashier’s checks vary by financial institution. Most banks typically charge a fee ranging from $5 to $15 for issuing a cashier’s check. Some institutions might have slightly higher fees, occasionally reaching up to $20, while credit unions often present lower fees, sometimes as little as $3 to $7.
Several factors influence the fee. Each financial institution sets its own fee schedule. Whether an individual holds an account at the institution can also impact the cost; some banks may only offer cashier’s checks to account holders, or charge non-customers a higher fee. Additionally, the type of account held can determine if a fee is assessed. Customers with premium checking accounts or those who maintain certain balance thresholds may find the fee waived entirely as a benefit of their account tier or customer relationship status. Inquire directly with your bank or credit union about their specific fees and any conditions for waivers.
What You Need to Get a Cashier’s Check
Gather specific information and documentation before requesting a cashier’s check. A government-issued photo identification, such as a driver’s license or passport, is consistently required to verify your identity. The bank guarantees the check with its own funds, necessitating a strict verification process.
Have the exact amount of the check available in your account or as cash to cover the payment. The financial institution will secure these funds before issuing the check. Precise information about the payee, including their full legal name or the exact business name, is required. Cashier’s checks cannot be issued blank, and details cannot be altered once printed.
The Process of Obtaining a Cashier’s Check
Most individuals visit a physical branch of their bank or credit union to complete the transaction. While some financial institutions offer the option to order cashier’s checks online or by phone, these typically involve mailing the check, which can result in a longer delivery time.
At the branch, you will approach a teller or bank representative and request a cashier’s check. You will provide the identification, account details, and payee information. The bank will then deduct the check amount and any associated fee directly from your account. If you are not an account holder at the institution, you may need to pay the full amount and fee in cash.
After payment, the teller will issue the cashier’s check. Carefully review all the details on the check, such as the payee’s name and the amount, to ensure accuracy before leaving the bank. Request and retain a receipt for your records, which can be useful for tracking or in case the check is lost.