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Cashier’s checks are often used when making large purchases, such as buying a home. As long as you have enough money in your account, getting a check from your bank isn’t difficult. Here’s what you can expect from a cashier’s check, its common uses and requirements.
A cashier’s check is guaranteed by the financial institution that issues it. While it may look like a traditional check, it’s actually more like paying with cash. This is because the bank has to verify that you have enough money in your account to cover the amount.
Every bank is different, so you might want to call ahead to make sure you have all the requirements. In general, make sure you have the following information on hand:
Cashier’s checks are typically issued to make a major purchase or large payment, such as buying a car or a home or making a down payment on a loan. But you can also use one when a payment needs to settle quickly, because cashier’s checks don’t need time to clear like a traditional check.
The fee to issue a cashier’s check is usually between $7 and $10, but some online banks issue them for free. We’ve compared the fees charged by the 10 largest banks below:
Bank | Fee |
---|---|
JP Morgan Chase | $8 |
Bank of America | $15 |
Citigroup | $10 |
Wells Fargo | $10 |
U.S. Bank | $8 |
Ally Bank | $0 |
PNC Bank | $10 |
Capital One | $20 if purchased online with overnight shipping; $10 if purchased at the branch |
Citizens Bank | $10 |
HSBC North America | $12 |
The bank’s guarantee makes a cashier’s check safe. But it can be forged just like any financial document. Some of the most prevalent cashier’s check scams include:
Use the following tips to avoid accepting a fake cashier’s check:
You can put a stop payment on a cashier’s check, but it typically costs more than when you stop payment on a traditional check. After the stop payment, you may not have access to your funds for anywhere from 30 to 90 days, depending on your bank’s policy.
Using a cashier’s check isn’t the only way to pay for something securely. You can also purchase a money order, certify a check or use a wire transfer to send money, but each of these methods have different costs and uses:
Cashier’s Check | Money Order | Certified Check | Wire Transfer | |
---|---|---|---|---|
Best for | Large purchases | Purchases under $1,000 | Large purchases | Sending money overseas |
Drawn from | Your personal account | Cash or your personal account | Personal account | Personal account |
Average cost | $10-20 | $1-2 at retail locations $5-10 at banks | $5-$15 | $20-$30 domestic $35-$65 international |
Where to issue/purchase |
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Cashier’s checks are the preferred currency for real estate and other high-dollar transactions, because the funds are guaranteed by your bank. If you tend to make large purchases requiring a cashier’s check and pay a hefty fee for each one, you might want to consider looking at other checking accounts at other banks.
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