What Is a Cashier’s Check?

Unlike a personal check, a cashier’s check may be drawn on the funds of a bank, not the funds of the payer (the individual writing the check).

When a bank issues you a cashier’s check, it can take the money from you or your account and transfers it to its own account. When the recipient cashes or deposits that check, the money can be paid directly by the bank. This means the recipient may take no risk that the payer wrote a check they don’t have funds to cover. 

Cashier’s checks can be a good option for large purchases where using a debit or credit card isn’t possible, and cash may be too risky. A cashier’s check has safety features, including watermarks and sometimes bank employee signatures, that help to prevent counterfeiting.² This can help to reduce the chance of theft or fraud.

Another advantage of a cashier’s check is that there may be no risk of bouncing because the payer must first fully pay the bank before the bank will write the cashier’s check.

Getting a cashier’s check can be a relatively straightforward process. You may want to visit your bank or financial institution, provide identification, and pay for the check. You may also need to pay a fee. Learn more about how to get a cashier’s check.

With a cashier’s check, the funds are drawn from the bank’s funds. With a certified check, on the other hand, the funds are drawn from your personal account. However, the bank certifies that you had sufficient funds to cover the check at the time that it was issued. Money orders are a form of prepaid payment. They can be restricted to a certain amount (often $1,000) and may not be backed by a bank.

Banks may charge a fee for issuing cashier’s checks, but some may offer them for a reduced fee, or no fee for premium account holders. The exact amount may vary by bank, but it usually ranges up to $10 in person and up to $20 for an online order to be delivered in person.³ Keep in mind that some banks may only issue cashier’s checks to account holders.

Cashier’s checks can offer a secure way to guarantee payment of large sums of money. However, there can be a number of common scams involving fake cashier’s checks. If you’re the recipient of a cashier’s check, here are some you may avoid being scammed:

• Verify the Check Is Legitimate
  You can verify the check is from a legitimate bank and that it has important security features, such as watermarks, security threads, and color-changing ink. You can also contact the bank on which the check is drawn to verify that it is legitimate. You may want to avoid calling the number on the check itself as it could be fraudulent. Instead, do your own research to find the bank’s contact number.⁴
• Be Wary of Cashier’s Checks from Unknown Individuals
  You may want to be wary of receiving cashier’s checks from unknown individuals or companies, and for large amounts of money. As with many scams, cashier’s check scams often present too-good-to-be-true opportunities that can entice unsuspecting recipients.⁵
• Verify That the Check Has Cleared
  Once deposited, contact your bank and verify that the check has cleared, and the money is in your account before spending or transferring any of the money.⁶
• Save All Documents
  Be sure to save all documents associated with a cashier’s check. This could prove to be useful if something goes wrong.⁷