Understanding Cashier's Checks
A cashier's check is a secure form of payment that is often required for large transactions, such as purchasing a car or a home. Unlike personal checks, which are drawn from the account holder's funds, a cashier's check is drawn from the bank's funds, making it a more reliable form of payment backed by the bank itself.
Why Use a Cashier's Check?
- Security: Since the funds are guaranteed by the bank, cashier's checks are less likely to bounce
- Acceptance: Many sellers prefer cashier's checks for large transactions due to their reliability
- Speed: Funds from a cashier's check are often available more quickly than those from a personal check
Where to Obtain a Cashier's Check
Traditional Banks and Credit Unions
The most common place to get a cashier's check is from a bank or credit union. Most financial institutions offer this service to both account holders and non-customers, though fees and requirements may differ.
For Account Holders
- Visit any branch location
- Present valid government-issued ID
- Provide the exact payment amount
- Specify the recipient's name
Many major banks like Chase, Bank of America, and Wells Fargo offer cashier's checks to their customers.
For Non-Account Holders
- Higher fees typically apply
- Cash payment required
- Additional verification may be needed
Online Banks
Many online banks offer cashier's checks, though the process differs from traditional banks:
- Ally Bank - Free cashier's checks for account holders
- Capital One - Digital request with physical delivery
- Charles Schwab - Online ordering through account dashboard
Note: Online banks typically mail cashier's checks to your verified address, so plan ahead for processing and delivery time.
Other Options
- Check-Cashing Stores: Some stores offer cashier's checks, but may charge higher fees
- Money Order Services: Services like Western Union offer money orders for smaller amounts
- Post Offices: The US Postal Service offers money orders as an alternative
Cost Comparison
| Provider Type | Typical Fee Range | Processing Time |
|---|---|---|
| Traditional Bank (Account Holder) | $8-15 | Immediate |
| Traditional Bank (Non-Customer) | $20-30 | Immediate |
| Online Bank | $0-10 | 3-5 business days |
| Retail Location (Money Order) | $1-5 | Immediate |
Security Features
Cashier's checks include several security features:
- Watermarks
- Security thread
- Color-shifting ink
- Microprinting
Tips for Getting a Cashier's Check
- Call ahead to verify service availability and requirements
- Bring proper identification
- Know the exact amount needed
- Have the recipient's exact name
- Bring sufficient funds to cover both the check amount and any fees
For more information about cashier's checks and their security features, visit the Federal Trade Commission's consumer information page or NerdWallet.
Remember to keep your receipt and track your cashier's check until it's successfully deposited or cashed. If lost or stolen, the process to replace it can be lengthy and may require purchasing an indemnity bond.