A cashier’s check is a bank-issued payment that’s guaranteed by the financial institution rather than the person who is writing the check. It’s commonly used for large or time-sensitive transactions, like real estate purchases or security deposits, because the funds are verified and won’t bounce. While cashiers’ checks typically come with a fee and require a visit to a bank or credit union, they offer added security that personal checks don’t.
Quick Take
- Cashier’s checks are payments backed by a bank and commonly required for high-value or urgent purchases.
- They don’t rely on your personal account balance at the time of deposit, which makes them safer for recipients.
- You typically need to visit a bank or credit union to get one, and fees usually apply.
- They’re widely used for real estate, vehicles and security deposits, but alternatives exist if you can’t get one.
How a Cashier’s Check Works
Unlike a personal check, a cashier’s check is a form of payment directly drawn on a bank’s funds. It doesn’t depend on your personal account to cover the amount. Cashier’s checks are, in a sense, “pre-paid” by the person who gets the check.
From renting a new apartment to purchasing a high-ticket item, many businesses and individuals require a cashier’s check for an added layer of security and to ensure they’ll receive the promised funds.
Cashier’s Check vs. Banker’s Check: What’s the Difference?
A cashier’s check is not the same as a banker’s check, which may also be called a teller’s check or bank draft. A banker’s check is given to you by a bank and drawn through another bank, which means it is payable at or through another bank.
When You May Need a Cashier’s Check
Cashier’s checks are most commonly used when guaranteed funds and quick settlement are required.
- Real estate transactions: Often required for down payments or closing costs.
- Vehicle or boat purchases: Sellers may require a cashier’s check instead of a personal check.
- Rental security deposits: Landlords often prefer cashier’s checks to ensure funds won’t bounce.
- Large brokerage or business payments: Used when funds must settle quickly and securely.
How To Get a Cashier’s Check
You can follow these four steps to get a cashier’s check:
- Visit your bank or credit union: Most institutions require you to be an account holder and present a valid photo ID.
- Provide the required details: You’ll need the payee’s name and the exact amount. Cashier’s checks can’t be altered once issued.
- Fund the check and pay the fee: The bank will withdraw the funds from your account and charge a service fee, which varies by institution.
- Verify and safeguard the check: Review all details before leaving and treat the check like cash. Always keep the receipt.
How Much Does a Cashier’s Check Cost?
Fees for cashier’s checks differ across financial institutions.
| Bank | Fee | Fees Waived? |
|---|---|---|
| Chase Bank | $10 | Free for Premier Plus, Secure and Sapphire Checking |
| Bank of America, Member FDIC | $15 | Fee waived for Preferred Rewards |
| Citi® | $10 | Fee waived for Citi Priority Account and Citigold® Account |
| U.S. Bank | $10 | Free for military customers who have a U.S. Bank Smartly Checking Account |
| PNC | $5 to $10, depending on account | Fee-free for Performance Select Checking® and Simple Checking® |
| KeyBank | $8 | Fees are mandatory for all |
| Navy Federal | 2 free cashier’s checks for members each day; additional checks are $5 each | Fees are mandatory for all |
| Ally Bank | $0 | N/A |
| TD Bank | $8 | Fee waived for Beyond Checking, Signature Savings, Private Tiered Checking and Private Tiered Savings |
| Wells Fargo | $10 | Fees are mandatory for all |
Pros and Cons of Using a Cashier’s Check
Pros
- Guaranteed payment with the bank’s backing
- Widely accepted for big-ticket transactions
- Safer than personal checks for large sums
Cons
- Costs more than a personal check
- Requires a trip to the bank to get one
- There’s a risk of fraud, like counterfeit checks, so stay vigilant
Cashier’s Check vs. Alternatives
If you’re unable to find a bank near you that will give you a cashier’s check without a checking or savings account, you still have a few options.
| Payment Option | How It Works | Best For | Key Downsides |
|---|---|---|---|
| Money orders | Issued by money transfer services or post offices | Smaller guaranteed payments | Lower maximum limits |
| Prepaid debit cards | Loaded with cash or direct deposit | Everyday spending | Not accepted for large transactions |
| Wire transfers | Direct bank-to-bank transfer | Fast, high-value payments | Fees can be high and transfers are irreversible |
How To Avoid Scams and Fraud
Identifying a fraudulent cashier’s check can take weeks. By the time a check is flagged, you may be out a considerable amount of money. Here are some tips to avoid getting scammed when using a cashier’s check:
- Use caution when accepting a cashier’s check from someone you don’t know.
- Contact the financial institution that the cashier’s check was issued from to find out if it’s valid. Do your own research to find contact information — don’t rely on the phone number printed on the check.
- Never accept a cashier’s check that’s written for more than the amount you asked for.
- Ask your bank when funds from the check will be made available to you and consider not spending any of those funds until the check has fully cleared.
Final Take
Even if a company doesn’t require a cashier’s check, there are times it can still benefit you to use one, like making a rent payment quickly to avoid eviction or late fees. If you need to pay something quickly or just want a more secure method of payment, this may be the way to go.
Cashier's Check FAQ
Here are the answers to some frequently asked questions about cashier's checks.- What is the difference between a cashier’s check and a money order?
- Money orders and cashier's checks are very similar. With a money order, the buyer prepays the total amount in exchange for a small piece of paper. It can be given to the payee, who can then deposit it into their account. In this manner, a money order is similar to a cashier's check, however, there are some key differences:
- There's a limit to the amount of each money order, which is typically $1,000. So if you need $2,000 in money orders, you have to purchase several and pay a separate fee for each one.
- The buyer fills out the money order instead of the bank.
- Money orders are not backed by a bank, and they can take longer to settle.
- Money orders and cashier's checks are very similar. With a money order, the buyer prepays the total amount in exchange for a small piece of paper. It can be given to the payee, who can then deposit it into their account. In this manner, a money order is similar to a cashier's check, however, there are some key differences:
- What are the benefits of a cashier’s check?
- There are many benefits of cashier's checks such as:
- Only the designated payee can cash the check, making it a very secure method of payment.
- It typically provides a quicker payout.
- Funds are backed by a bank, so the check won't bounce.
- There are many benefits of cashier's checks such as:
- How do you pay for a cashier’s check?
- Here are some steps you can take to pay for a cashier's check:
- Determine where you will get the cashier's check
- Choose between online or in-person services
- Have your payee's information and the exact amount available
- Pay for the cashier's check and fees either in cash or from your checking account
- Receive the prepared and signed cashier's check as well as your receipt
- Here are some steps you can take to pay for a cashier's check:
Brandy Woodfolk, Cynthia Measom and Caitlyn Moorhead contributed to the reporting for this article.