Cashier’s checks usually cash within one business day.
A cashier’s check is sometimes also called a teller’s check and these are used to draw on a bank’s own funds for making payment for goods or services rendered. Once a bank has created a cashier’s check, that particular bank guarantees that it will pay the amount that has been listed on the check. Any legitimate cashier’s check will also not bounce.
Obtaining a Cashier’s Check
If you need a cashier’s check, you’ll have to bring the amount of cash into the bank that you need to have the check issued for. Alternatively, you will need to have that amount of money in an account at that specific bank and the bank will transfer it from your account to theirs. These funds will then be made available whenever the payee cashes the check.
When are Cashier’s Checks Used?
These checks are normally used when making purchases that are larger than usual, where it’s not safe or practical to carry such large amounts of physical cash, such as:
- Making a down payment on a property
- Purchasing land
- Purchasing a car or other large item with cash
- Paying large amount of outstanding taxes
- Paying a lump sum for college tuition
Where to Get a Cashier’s Check
If your bank offers this service, you can purchase a check directly from them or through their online banking portal. When purchasing a cashier’s check, you’ll need to supply photo ID, the amount that you need the check to be made out for and correct spelling of the payee’s name. These checks are printed out and absolutely no handwritten information can be included on them.
Cost of a Cashier’s Check
When obtaining a cashier’s check, bear in mind that you’ll usually be charged a fee for this service. While some banks may provide them to customers for free, others typically charge a rate of between $8 and $20 to supply a cashier’s check.
It’s important to remember that each bank will have its own policies with regards to the issuing and using of cashier’s checks. As such, it’s recommended that you check with them ahead of time to confirm whether any limitations will apply when using one of these checks to cover the cost of a larger than average purchase. There may even be cases where obtaining a money order will be more convenient than using a cashier’s check as well.