What Is a Cashier’s Check and How Do You Get One?

A cashier’s check is a secure form of payment, backed directly by the issuing financial institution, not an individual’s personal account. This provides a high level of assurance that the funds are guaranteed.

Understanding Cashier’s Checks

A cashier’s check is a payment instrument issued by a financial institution, such as a bank or credit union, and drawn on its own funds. Unlike a personal check, which draws money from an individual’s account, a cashier’s check is guaranteed by the bank. This makes it a reliable choice for large purchases, such as a vehicle or a down payment on a home, as it virtually eliminates the risk of the check bouncing.

Cashier’s checks typically feature security elements like watermarks, microprinting, and signatures from bank employees, making them more difficult to counterfeit. The check includes the names of both the remitter (the person who purchased the check) and the payee (the recipient), and it cannot be made out to “cash.” Once issued, funds are immediately withdrawn or frozen from the payer’s account and transferred to the bank’s own funds, guaranteeing payment.

Obtaining a Cashier’s Check

Acquiring a cashier’s check requires visiting a bank or credit union branch. Most financial institutions offer this service primarily to account holders, though some may issue them to non-customers for an additional fee. To obtain one, you must provide the exact amount and the full legal name of the payee. Banks cannot issue a blank cashier’s check.

You will need to present a valid government-issued photo identification, such as a driver’s license, to verify your identity. The funds for the check, along with any associated fees, must be available in your account or paid in cash at issuance. Banks typically charge a fee for a cashier’s check, generally ranging from $10 to $15, though some premium accounts may have this fee waived. Retain the receipt provided by the bank as proof of payment.

Using and Verifying a Cashier’s Check

Upon receiving a cashier’s check, the recipient can deposit it into their bank account. Funds are often made available by the next business day, though financial institutions may place a hold on large amounts for verification. This processing time is generally faster than for personal checks, which can take several business days to clear.

To protect against fraud, verify the authenticity of a cashier’s check, as counterfeit checks can be sophisticated. The most reliable method is to contact the issuing bank directly, using independently looked-up contact information rather than any number printed on the check. Examine the check for security features like watermarks, microprinting, and color-shifting ink, and be wary of inconsistencies such as typos or blurry text. Also, be cautious of overpayment schemes. Always wait for the check to fully clear and for funds to be confirmed in your account before acting on the payment.

Comparing Cashier’s Checks to Other Payment Methods

A personal check is drawn directly from an individual’s checking account and lacks guaranteed funds, meaning it can bounce if the account has insufficient money. In contrast, a cashier’s check is drawn from the bank’s own funds, providing a guarantee of payment.

Certified checks are another option where the bank verifies that sufficient funds are available in the payer’s personal account and places a hold on those funds. While a certified check assures the recipient that funds exist at certification, it is still drawn on the individual’s account. A cashier’s check is drawn on the bank’s account, making the bank the direct guarantor.

Money orders are typically used for smaller amounts, often with limits around $1,000, and can be purchased from various locations beyond banks, such as post offices or retail stores. Money orders are prepaid, similar to cashier’s checks, but generally have lower fees and are not always bank-issued, offering less security than a bank-guaranteed cashier’s check.