What is a cashiers check
How to Get a Cashier's Check
A cashier's check is a check that is a drawn on a bank's funds rather than your own personal funds. It offers a secure way to pay in situations where a personal check is not appropriate, such as real estate transactions. What makes a cashier's check different from a personal check is the guarantee. Anyone can write a personal check for any amount, but that doesn't mean the check is any good. Because cashier's checks are checks issued by banks, they represent a guarantee of existing funds. As with any check, fraud is possible, however with cashier's checks there are fewer opportunities.You can get a cashier's check at a bank, for a small fee (often around ten dollars), by following a very simple process..
Preparing the Necessary Information and Documentation
Know the “payee”, the name of the person you will give the check to.You cannot get a blank cashier's check. You must have a payee. A cashier's check has the payee information completed on the check itself. Unlike a money order, on a cashier's check you can't write in the payee information yourself. It may be useful to take the payee to the bank with you, so that you have all the information you need.
- On the check itself, be sure to give the first and last name of the payee as it appears on their identification. If you are not sure of this information, ask the payee.
- If your cashier's check is getting used to pay an organization and not an individual, be sure to find out how to complete the payee information according to the organization's guidelines.
- Cashier's checks are a better option than a money order for larger payments, because money orders often have maximum limits, but there will be no maximum limit on a cashier's check amount.
- Find a large bank that issues cashier's checks to the general public, and bring cash funds, if you do not have a bank account.
Determine the exact amount needed.You need to know the exact amount before you get the check. In many cases, the amount is printed on to the check when you receive it from the bank teller. But in any case, the amount will be filled in by the cashier, so you will have to tell him exactly how much to put on it. The cashier will sign the check after verifying you have the funds in your account (or with you) to cover the amount of the check.
- Bring any documents that show how much you need the check to be written out for, to ensure you have this information with you when purchasing the check.
Be ready with your identification.The bank you purchase your cashier's check from will require you to show identification. Banks guarantee a cashier's check with their own funds. For this reason, they will ask to verify your identity, access your account, and ensure you have the money necessary to cover the check amount.
- It may be beneficial to bring multiple forms of ID, particularly if you need a cashier's check for a large amount.
Part 1 Quiz
Which is true of cashier's checks?
Purchasing the Cashier's Check
Prepare the necessary funds.Deposit enough money into your account to cover the amount of the cashier's check. If you are purchasing the check from a bank where you don't have an account, bring the amount in cash. You will have to pay a small fee to pay for the service the bank provides.
- If you are a customer of the bank where you purchase the cashier's check, you may receive a discounted price for the service.
- If you are not a customer of the bank where you purchase the check, you may have to pay a higher fee (typically some percentage of the check amount). Banks are not required to issue these checks to the general public.
- Some upper-level bank accounts may qualify for free cashier's check service.
Visit your chosen bank to purchase the check.Any bank can issue a cashier's check, but the best option for you will be the cheapest option. Check with your bank to find out if you qualify for any special pricing or fee waivers.
- Compare prices between different banks to get the best deal.
- The top ten banks in the United States have an average cashier's check fee of .10.
Give a bank teller all the information you have prepared, and allow him to print the check for you.A bank teller will prepare a cashier's check for you on the spot—you do not need an appointment. You will, however, have to meet face-to-face with a teller to get the check.
- The teller may have to sign the check for you, he may use a stamp, or another method of verification.
Pay for the check.The amount of the check you are purchasing plus the bank's fee will be debited from the account into which you deposited the funds.If you are not a customer at the bank where you purchase the check, present your cash for the check's amount plus the bank's fee.
- Find out fee costs ahead of time to ensure you have the cash to cover the full amount.
Part 2 Quiz
What do you need to know when purchasing a cashier's check?
Securing a Cashier's Check
Get a receipt for your cashier's check.Make sure to get a receipt in case you lose or damage the check; unlike a personal check, you can't simply tear it up and write a new one. The receipt will have the check number and date, allowing you to contact the bank in case you should lose the check for any reason.
- Be sure to keep your receipt in a safe place at least until the check has cleared.
Track your check.The bank has sophisticated ways of tracking your check, to be able to tell whether the check has been cashed or not. Databases can be searched for the check number, and, if it is not found, this tells the bank that the check has not yet cleared. Simply present your receipt at the bank for an update about whether your check has been cashed by the payee.
- If the check never reaches its destination for any reason, the bank can cancel the original check and resend payment.
- Check with the payee periodically in addition to the bank to see if the check has reached its destination.
Get proof of the cashed check.You can get proof of the check's having been cashed with a copy of the front and back of the check from the bank. A fee may be required for this service. In the event that the person who cashed the check is not the payee, the bank can get the money back and initiate criminal proceedings against the person who cashed the check illegally.
- Lots of fraud is committed via cashier's checks, so keep a close eye on your cashier's check to be sure it has reached its destination using the tracking tools the bank has at its disposal.
Part 3 Quiz
True or False: If your check never reaches its destination for any reason, the bank can cancel the original check and resend payment.
QuestionCan the payee get the money as soon as they receive the cashiers check?
Entrepreneur & Retired Financial AdvisorEntrepreneur & Retired Financial AdvisorExpert AnswerThe Payee on a Cashier's Check can receive immediate funds (cash or deposit into a personal savings or checking account) when cashing the check since the issuing bank has guaranteed payment.Thanks!
QuestionIf I decide not to pay with a cashier's check, can I get the money back into my bank account?
Entrepreneur & Retired Financial AdvisorEntrepreneur & Retired Financial AdvisorExpert AnswerYes. In most cases, you can simply endorse the check following the issuing bank's instructions and they will deposit funds back into your account or make a cash refund immediately.Thanks!
QuestionWould it be better to cash a cashier's check at the bank it is printed from or to open an account with that bank to protect myself from fraud?Top AnswererNo need to open an account. It would be safe to cash it at the bank it was drawn on.Thanks!
QuestionCan I purchase a cashier's check with a debit card?Top AnswererThanks!
QuestionIf I am in a place where I do not have bank access, what is the best way to get a cashier's check?wikiHow ContributorCommunity AnswerIf you have an existing relationship with a bank, some banks offer the option to mail a cashier's check to your physical address.Thanks!
QuestionHow can I verify a cashier's check?wikiHow ContributorCommunity AnswerYou can call the bank. There should be a number on the back of the check to call and verify funds.Thanks!
QuestionHow do I make sure a cashier's check is legitimate?Top AnswererAll you can do is deposit the check and see if it clears, which can take several days.Thanks!
QuestionHow do I apply for a cashier's check to get money for a car and furniture?wikiHow ContributorCommunity AnswerKeep in mind, a cashier's check is not a loan or any other type of cash advance. Payment by you is still due up front and in full, it is simply a safer and more secure method of paying someone than using cash or a hand-written personal check. That said, the method for buying a cashier's check to pay for a car or furniture is exactly the same as the one outlined above.Thanks!
QuestionDo I need to sign a cashier's check?Top AnswererNo. A representative of the bank signs it.Thanks!
QuestionWhy do banks only sell cashier's checks to bank customers?Top AnswererIf you're buying the check with cash, you don't have to be a customer. Otherwise, the bank wants to be sure that you're using available funds to pay for the check.Thanks!
Can I get a cashiers check from a bank that's not mine? Do I need cash to pay for it or can they contact my bank?
Where is the routing number on a cashier's check?
Can I get a cashiers check made out to myself?
How soon does a cashier's check get debited from a bank account after I get it?
Will I receive a receipt after cashing a cashier's check?
- Be wary of accepting cashier's checks in certain situations. Although they are generally viewed as secure, cashier's check fraud is a fairly common practice; a fraudulent cashier's check will clear your bank account several days before it is discovered to be bad, and you, not the charlatan, will be liable to repay the bank for the full amount.
Video: Certified Check | Cashier's Check - What is it? How you can obtain one and Why you might need one
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