Some day you may find yourself in a situation where your debit cards, credit cards, and checks will not be accepted. Then what do you do? At that point a cashier’s check may be the best option.
Many people are not familiar with a cashier’s check, but it is quite simple. It is simply a check guaranteed by the bank and signed by the cashier teller verifying that you have enough funds in your account to make the purchase.
Usually this is only necessary for large purchases such as real estate, however some people prefer to use this method for casual purposes as well. If you’re interested in learning more then keep reading!
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Benefits of Using a Cashier’s Check
There a couple of select instances where a cashier’s check will have an advantage over personal checks. Funds have the ability of being available on the next business day. However, banks can still place a hold on a cashier’s check if they meet one of these criteria:
- If the check is in excess of $5,000
- If the bank deems the check uncollectible from the paying bank
- If the check is made out to a new account
- If the check is made out to an account with a history of overdraft fees
How To Order A Cashier’s Check
- You can usually purchase a cashier’s checks through your bank or credit union.
- Then you have to supply the exact amount of the check, the name of the “payee”, (the business or the person) that you are trying to pay.
- After that, a cashier teller will verify that you the “remitter” have the funds to pay for the cashier check.
- Upon verification, if the money is available in the account, then the full amount of the check will be frozen in your account or withdrawn when the check is issued.
- Finally, the bank officer or cashier teller will sign off on the amount and the check will be written for the amount requested.
Pros Of Using A Cashier’s Check
- Making a down payment on a house
- Making a deposit for renting an apartment
- Buying a car or a boat
- Buying land
- Purchasing items costing $5,000 or more
Cons Of Using A Cashier’s Check
- There is usually a fee when issuing the check, but sometimes it is waived if you have a checking or savings account with the bank/credit union.
- If you lose a cashier’s check, the bank may require that you get an indemnity bond before issuing another one. Which may take 30-90 days.
- Scams commonly use cashier checks; some include:
- You won a price such as a foreign lottery, but they claim that there is a tax or fee that you need to pay. The scammers say that they will cover the tax with a cashier’s check, ask you to deposit it into your account, and send it a third party.
- Ordering goods with fraudulent cashier’s checks.
What Are the Fees?
Most banks and credit unions offer cashier’s checks and certified checks, but note all offer both, and some use a different name, “official checks.” Make sure to ask your bank for availability and pricing! Many sell them only to account holders, so they might offer you with reduced fees or no fees!
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Useful Bank Topics & News
Cashier’s Checks & Money Orders are often confused because they have many similarities and even look similar. They both serve the same purpose of being used as a form of payment, however there are important differences that must be recognized before you use either.
Some of the most important differences include the money limit, security, and availability. For those reason, cashier checks are seen as a more credible form of payment compared to money orders. If you’re interested in learning about which one is best for you and your situation, keep reading! Read more about Cashier’s Check vs. Money Order: What is the difference?
Nowadays it seems as though no one is writing checks anymore, however you may be surprised by what you may need them for. Whether that is paying for rent, or if you suddenly find yourself without any cash or your credit/debit cards, a check may be a convenient thing for you to have on hand.
Now you may be asking yourself now how do I order checks? Well the good news is that there are a multitude of ways for you to obtain them! You have the option of doing so online, in branch, or over the phone. Read more about How To Order Checks via Chase: Online, Vendor Site or by Phone today!
Many of us do not realize how often we are exposed to ACH payments or how much we depend on them to transfer money as a form of payment. One of the reasons why they are so popular is probably due to its convenience and low processing fee, which is a major benefit for consumers who work with them all of the time.
Since the majority of us are exposed to ACH payments, we should be able to recognize how those types of payments work and what goes on in the process of sending something as valuable as your hard earned money. We have compiled some information regarding this particular type of money transfer, and hopefully after reading this post, all of our readers will understand How ACH payments work.
Bottom Line
As explained above, cashier’s checks, depending on your situation may be a safer and more efficient method of payment! Especially if you’re purchasing real estate and may be the only payment method accepted. Just keep in mind of all of the pros and cons before you pay.
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Great post! I had always heard about cashier’s checks but wasn’t clear on when to use them. The step-by-step guide on how to obtain one is really helpful. Thanks for breaking it down!
Am I going to get my money