Just what is a cashier’s check, and when would you use one? If you’ve never seen a cashier’s check, you are not alone.
Many people wonder "What is a Cashier's Check?" In this day and age of debit cards and electronic transfers, this once-important form of money handling is growing less popular. However, there are several instances when a cashier's check will be more helpful than a regular check. Whether you need to get a cashier's check or you receive one and need to cash it, it's important to know how they are used.
What is a cashier's check?
A cashier's check is a type of check that is issued for you by your bank. Unlike personal bank checks, where you fill out the information yourself, a cashier's check is filled out by the bank. The amount and name of the payee are printed on the check when it is issued. You'll need to visit your bank's local branch in order to get a cashier's check to pay someone.
The major difference between a cashier's check and one that you just tear out of your checkbook is certification. With a handwritten check, you may or may not have money in your account to cover the funds. Since the funds are not withdrawn until the check is deposited, you don't have to prove that you have the money in order to write the check and give it to the payee.
A cashier's check, since it is created at the branch office, is certified. This means that the bank that issues the cashier's check approves the withdrawal since you have the funds to cover it. The funds are withdrawn immediately instead of when the check is deposited. Cashier's checks cannot be forged, and they will not bounce.
How can I get a cashier's check?
If you need to use a cashier's check to pay for a large expense, you need to visit your bank. They will let you know if you have the funds available to withdraw the money. The bank teller will probably have you fill out a withdrawal slip with the payee's name and the amount that you want the check for. The teller will have the check printed and charge you a small fee of $1 to $5 depending on your bank. Once the check is printed, keep it safe until you give it to the payee.
How can I cash a cashier's check?
If you've received a cashier's check as payment from someone, you'll be happy to know that it's as easy to deposit as a handwritten check. You endorse the back of the check just like you would any other check. You then deposit the check in your bank's ATM or in person in a branch office.
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