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Cashier’s checks are payment tools that banks issue out with the guarantee that the bank is responsible for the funds, rather than the individual sending them. People typically use cashier's checks for large payments, such as home loans or purchasing a vehicle.
Purchasing a new home, vehicle, or paying off a large debt?
A cashier’s check is one of the most commonly preferred payment methods for large purchases, where the buyer and seller can’t risk the funds not going through. Because the funds are guaranteed by the bank, the sender and receiver know that the payment is legitimate, available, and will be quickly deposited and accessible.
Keep reading to learn more about what cashier’s checks are used for and how to get one.
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A cashier's check is a payment guaranteed by the issuing bank or credit union, drawing funds directly from their own account after the customer has paid them. So, the sender pays for the check before it’s issued, with the funds coming from the bank to the recipient. This ensures that the payment goes through.
People typically use cashier’s checks for large purchases where the receiver wants the funds to be guaranteed. Cashier’s checks can only be deposited by the receiver, so they can be a more secure payment method compared to cash. Here are some of the most common use cases:
| New rent agreements | For security deposits or the first and last month's rent |
| Real estate transactions | For down payments, closing costs, or earnest money deposits |
| Vehicle purchases | For buying a car, boat, or other high-value vehicle, especially from a private seller or a dealership |
| Large purchases from private sellers | For buying valuable items from an individual (e.g., expensive electronics, jewelry, collectibles) |
| Settling large debts | For use in some legal settlements or when paying off a substantial debt |
Cashier’s checks are available at both banks and credit unions. While people generally do this in person, some banks or credit unions may allow online cashier check orders. The specific bank or credit union depends on several considerations, with some deciding factors below.
| Banks | Credit unions | |
|---|---|---|
| Fees | Typically $5-$20, may be waived for certain accounts1 | Often lower fees or free for members |
| Membership | Generally, no membership requirements; open to anyone | Membership required (common bond like location, employer, etc.) |
| Convenience | Wide network of branches, sometimes 24/7 support | Fewer branches, more local focus, possibly shorter hours |
| Customer service | Can be more self-service, personalized for large clients | Often more personalized, relationship-based |
| Security | Federally regulated (FDIC insured) | State-regulated, deposit protection (NCUA insured) |
| Product/services | Wider range of products and services | May have a more limited range of products, but often with better rates |
Getting a cashier's check is a straightforward process that involves visiting a financial institution, providing the necessary details for the payment, and covering the amount of the check along with any associated fees. This secure form of payment guarantees the funds are available, as they are drawn directly from the bank's or credit union's own account.
To obtain a cashier's check, individuals typically need to visit a physical branch of a bank or credit union. When banking with a local institution, simply go to the nearest branch during business hours.
Those with digital or online-only banks may need to check if there are any physical locations or if they offer a service to mail a cashier's check, which may take additional time.
When at the bank, individuals should clearly state the exact amount they want the cashier's check to be for. Additionally, the bank needs to know the full legal name of the check's recipient (the payee). Having this information accurate and readily available helps to ensure the check is issued correctly.
Banks usually deduct fees directly from the payer's account along with the check amount and won't issue the cashier's check until these funds are secured.
Once the bank has issued the cashier's check, the individual is responsible for delivering it to the named payee. They can either hand-deliver it, send it through the mail, or use a trusted courier service.
Since a cashier's check is a guaranteed form of payment, the recipient can typically deposit or cash it without any hold once they receive it.
Unlike personal checks, a cashier's check has no risk of bouncing due to insufficient funds. This offers a level of security that makes some people prefer it for significant purchases, such as real estate or vehicles.
In addition to being guaranteed by the bank, a cashier's check has several key advantages:
While all three are generally considered secure forms of payment, they differ in several ways. The key differences between cashier's checks, money orders, and certified checks are:
While cashier's checks are generally considered secure, they are not immune to scams. Avoiding cashier's check scams boils down to skepticism, patience, and direct verification.
If check fraud is suspected, individuals should report it immediately to their bank, the bank that supposedly issued the check, and relevant authorities like the police or the Federal Trade Commission. Here are some key tips to protect against cashier’s check scams.
An overpayment is a large red flag. If someone sends a cashier's check for more than the agreed-upon amount and asks the recipient to refund the difference, it's almost certainly a scam. Usually, legitimate buyers will send the exact amount.
Scammers often provide fake numbers that connect to their accomplices. Instead of using the phone number printed on the check, recipients can look up the official phone number for the bank on which the check is drawn (e.g., through their official website or a trusted online directory).
That official number will connect callers to the issuing institution, which should be able to verify the check's authenticity through the check number, date, and amount.
Just because money appears in the account doesn't mean the check has cleared. By law, banks have to quickly make funds available, but it can take days, or even weeks, to discover a fraudulent check and for the deposit to be reversed by the bank.
It's important to avoid spending, withdrawing, or wiring any money until the bank explicitly confirms that the check has fully cleared and the funds are permanently in the account.
Scammers often try to rush action, emphasizing the "urgent" need to send money back. The goal of this pressure is to prevent individuals from doing their due diligence and recognizing the signs of a scam.
Cashier's check recipients should be cautious about accepting checks from unknown individuals, especially if the transaction originated online (e.g., through classifieds, social media marketplaces, or distant "job offers"). If possible, deal with local buyers and sellers for in-person exchanges.
This timeless adage applies perfectly to scams involving unexpected windfalls, lottery winnings, or lucrative job offers that require receivers to "process" funds. Legitimate lotteries don't usually ask people to pay fees to claim a prize.
Cashier’s checks are an easy way to make large payments. With guaranteed funds from the issuer, the recipient can rest easy knowing that the funds will clear and be available to them soon.
Cashing checks can be quick and easy with mobile banking services. Users can cash checks without even visiting a bank.
Learn how with PayPal’s mobile check cashing.
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