What to Do With a Cashier’s Check You’ve Received
Understand how to properly handle a cashier's check you've received, ensuring its authenticity and the safe availability of your money.
A cashier’s check is a secure payment method, drawn directly on the bank’s own funds and guaranteed by the financial institution. They are reliable for significant transactions like real estate down payments or vehicle purchases, providing assured funds.
Verifying Your Cashier’s Check
Verify a cashier’s check’s authenticity before depositing or cashing. Inspect the check for security features like a watermark, a security thread, and microprinting under magnification.
Check for consistent bank logo, correct routing and account numbers, and distinguishing marks. Counterfeits may have blurry printing, misspellings, or unusual paper. Contact the issuing bank directly to verify validity and fund availability. Use official contact information from their website or a reliable directory, not numbers printed on the check, which may be fraudulent.
When contacting the bank, provide the check number, amount, and remitter’s name. The bank confirms legitimate issuance and fund availability. Complete this step before any transaction to safeguard your finances.
Depositing or Cashing Your Check
After confirming legitimacy, endorse the check by signing the back. Your signature must match the payee’s name on the front. If depositing, add “For Deposit Only” below your signature to prevent further negotiation if lost or stolen.
Deposit cashier’s checks via teller, ATM, or mobile app. In-person deposits require valid government-issued identification. Cashing may require additional identification or a hold period before receiving the full amount.
For ATM or mobile app deposits, ensure clear image quality and visible check corners. Obtain a physical or digital deposit receipt. The receipt proves your transaction, detailing amount, date, and estimated fund availability. Keep this record for your financial documentation.
Understanding Fund Availability
Cashier’s checks may have a holding period before full availability, despite being drawn on bank funds. Federal regulations (Expedited Funds Availability Act) mandate quick fund availability, often by the next business day. Longer holds may apply for amounts over $6,725 or new accounts (open less than 30 days).
When deposited, your bank provides “provisional credit,” meaning funds appear in your account but are not yet cleared. Spending funds before clearance carries risk, as the bank can reverse credit if the check is fraudulent or uncollectible. This can lead to negative balances or overdraft fees. Confirm fund availability with your bank’s teller or online after deposit.
Understanding these availability policies helps manage expectations and prevent financial complications. Your bank’s funds availability policy is outlined in your account agreement or available from a representative. Confirming fund clearance ensures a smoother, more secure transaction.
Addressing Specific Situations
If a cashier’s check is lost, immediately contact the issuing bank to report the loss and inquire about their stop payment process. The bank requires a “Declaration of Loss” form, affirming you are the rightful payee and have not endorsed or transferred it. Due to guaranteed funds, an indemnity bond may be required to protect against financial loss if the original check is later presented. Replacement may take 30 to 90 days, depending on bank policies.
If a cashier’s check is stolen, take similar actions as for a lost check, plus additional steps. First, file a police report with local law enforcement, detailing the theft. Next, notify the issuing bank and provide a copy of the police report. The bank will initiate stop payment and replacement procedures, involving the Declaration of Loss and potentially the indemnity bond.
If a deposited check is fraudulent, immediate action is required to mitigate financial damage. Contact your bank immediately. While funds may be provisionally credited, your bank will reverse the credit once fraud is confirmed, making you responsible. Report the incident to law enforcement and consider filing a complaint with the Federal Trade Commission (FTC) to aid anti-fraud efforts. Legal responsibility for a fraudulent check rests with the recipient, even if it initially appears legitimate and funds become available, highlighting the importance of thorough verification before any transaction.