A cashier’s check is a type of check that are issued by banks. The bank issues a check and the money will be paid out from the bank.
In comparison to personal checks, people tend to prefer cashiers check because they are guaranteed not to bounce and are safer. In this guide, we will breakdown what exact a cashier check is and why you need to get one.
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How Cashier’s Checks Work
A cashier’s check is typically preferred over a traditional check for safety reasons. A bank must guarantee the money is there before issuing a cashiers check, and this means the check will not bount.
A cashier’s check is usually used for large payments that might need extra protection. For example, you might use a cashier’s check for any of the followng:
- Home or Car Down Payment
- Mortgage Closing Costs
- Car or boat purchse
- Purchase of Land
In other words, a cashier’s check is not typically used for everyday spending.
When Do I Need a Cashier’s Check?
A cashier’s checks is usually used on large purchases, such as when buying a house or car. A special featue about cashier’s check is that these checks have extra security features including watermarks and signatures by bank employees that ensure that the check is a valid check. This makes it difficult for cashier’s check to be counterfeit and every can bank confident that the transaction is secure.
How Do I Get a Cashier’s Check?
You can typically get a cashier’s check by contacting your bank and asking for one. These are the steps to follow:
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Have the amount and recipient’s name ready prior to requesting the check. You will also need to have an ID for yourself with your own personal identification.
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Often times, the cashiers check will be mailed to you if you are contacting your back via phone or on their website, however, if you need a cashiers check right away, you can always head to a physical branch.
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Pay the check amount plus any applicable fees that were associated
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Ask for a receipt and proof of payment in case you need to track your money.
Advantages and Disadvantages of Cashier’s Check
Advantages
- Payee assured funds are available
- Faster than traditional check
- Lower risk of theft
Disadvantages
- Usually a fee associated when requesting cashiers check
Are Cashier’s Checks Safe?
When they are legitimate documents that are issued by a bank, cashier’s checks are definitely safer than traditional checks. Most sellers view cashiers checks with confidence because the bank ensures the payment to the person . But in recent year, this safe reputation enables con artists to steal money.
Conclusion
Despite more modern alternatives, cashier’s checks are still popular for substantial payments. Assuming the check is legitimate , cashier’s checks are among the safest ways to receive payment. Definitely be sure to take a look into getting cashier checks next time you are looking into your next bank account.
Additionally, If you are interested be sure to check out our list of bank bonuses, saving rates and CD rates!
