What Is the Fee for a Cashier’s Check?
Uncover the true cost of cashier's checks. Learn how fees differ across providers and compare pricing for alternative secure payment options.
A cashier’s check represents a secure form of payment, issued and guaranteed by a financial institution. This method ensures funds are available for the payee, as the money is drawn from the bank’s own reserves after being paid upfront by the customer. Understanding the costs associated with obtaining a cashier’s check is important for anyone considering this payment option.
Understanding Cashier’s Check Fees
The cost of a cashier’s check typically ranges between $5 and $15, varying by institution. Some banks charge a flat fee, while others base it on a percentage of the check’s amount. These fees cover administrative expenses and the inherent guarantee provided by the bank or credit union.
Several factors determine the exact fee. Being an account holder often leads to lower fees or waivers, especially for customers with premium accounts or specific balance requirements. Non-account holders may face higher fees, and some institutions might require cash payment for the check amount. The urgency of the request can also influence costs, with some banks imposing additional fees for same-day service.
Fees by Financial Institution
Fees for cashier’s checks are not uniform across all financial institutions, showing differences between various types of providers. Large national banks typically charge account holders around $8 to $10, with non-account holders potentially facing higher charges or being unable to obtain a check without an existing relationship. For example, one major bank charges account holders $10 and non-account holders $15.
Credit unions, being member-owned, frequently offer more favorable fee structures. Many credit unions provide cashier’s checks at reduced costs or even for free to their members as a benefit of membership. Some credit unions might offer a certain number of free cashier’s checks per month, with a small fee for additional requests. It is advisable to contact a specific bank or credit union directly to inquire about their fee schedule, as policies can differ and may depend on the type of account held.
Other Secure Payment Options and Their Costs
For those seeking alternatives to cashier’s checks, several other secure payment methods are available, each with its own fee structure. Money orders are generally less expensive, typically costing under $5, and can be purchased at various locations like post offices or retail stores. For instance, a USPS money order can cost between $2.55 and $3.60, depending on the amount. These are often suitable for smaller transactions, typically with a maximum limit of $1,000.
Certified checks offer another option, drawing funds directly from the payer’s account but guaranteed by the bank. Their fees are often comparable to or slightly higher than cashier’s checks, generally ranging from $10 to $20. Wire transfers provide a rapid way to send funds electronically, but they come with significantly higher fees, usually ranging from $15 to $50 or more for domestic transfers. Digital payment services often charge percentage-based fees for transactions, which can vary based on the provider and the transaction type.