What is a cashier's check? Your complete guide (2024)

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• A cashier's check is a bank-issued check that promises funds will be available when it is cashed.
• Cashier's checks are useful for large transactions, like buying a house or a car.
• Most financial institutions offer cashier's checks, but some only issue them to their customers.

If you decide to pay someone with a check, you have three main options: personal checks, certified checks, and cashier's checks.

Personal checks are the most common. They're what most of us think of when we hear the word "check." However, for the recipient, these are also the riskiest kind of check. When there isn't enough money in the account to cover the personal check amount, the check will "bounce." The risk of bounced checks is one of the major reasons why many retailers no longer accept personal checks as a payment for goods.

But cashier's checks don't carry this risk. Legitimate cashier's checks will not bounce. This is why they're often one of the preferred methods of payment in large transactions. Let's take a closer look at what a cashier's check is, when to use one, and how to get one.

What is a cashier's check?

A cashier's check (also called an "official" check) is a type of bank-issued check where the bank itself guarantees that the funds will be available when the check is cashed. Let's say you go to your bank and ask them to issue you a cashier's check for $1,000. In this case, your bank would immediately move the $1,000 out of your account and into its own.

Certified checks are similar to cashier's checks. With both types of checks, the bank will immediately move the funds to cover the check at the moment it's issued and both are considered a guaranteed form of payment. However, you will personally sign a certified check, while your bank will sign as the guarantor of a cashier's check.

Using a cashier's check for large transactions

Cashier's checks can be helpful in any financial transaction in which the recipient would like extra assurance that the money is truly in the bank. However, they are especially useful in large transactions, like buying a car or a house.

Personal checks or cash are often an unacceptable form of payment in large transactions. And debit cards and credit cards are often unsuitable as well due to daily spending limits on the former and credit limits on the latter.

A cashier's check is one of your best options for paying for that house, boat, car, or any other large purchase. Many financial institutions do not enforce a limit for how much money can be issued through a cashier's check. In fact, your escrow or title company is likely to require that you bring along a cashier's check or certified check to the real estate closing table to cover your financial obligations.

How to get a cashier's check

While many financial institutions don't offer certified checks, nearly all banks and credit unions do offer cashier's checks.

If your bank has a local branch, it would probably be easiest to visit in person and speak to a teller. However, some banks — especially the best online banks — will allow you to request a cashier's check to be sent through the mail.

The cashier's check process is also pretty straightforward at online banks. Generally, you'll have to call customer support or see if you can make an order through online banking.

Cashier's check requirements

To get a cashier's check, you'll need to provide the personal information of your check recipient. Then you must provide payment to cover the check amount in addition to the bank's service fee.

Many banks will require you to have an account with them in order to get a cashier's check. But some may be willing to issue one if you bring along the cash with you to cover the cashier's check and fee. Also, keep in mind that the bank you choose may charge a higher cashier's check fee to non-customers.

Cashier's check costs at national banks

Cashier's check fees generally cost about $10 on average, but your bank could charge a little less or more. Most banks also waive the fee if you meet their eligibility requirements, such as having a certain account or being part of a rewards program. Here's an overview of how much a cashier's check costs at some of the biggest banks:

What to do if your cashier's check is lost or stolen

If your cashier's check is lost or stolen, call your bank as soon as possible to let them know. You can ask a representative whether it's possible to get a replacement check. However, banks usually won't be able to issue stop payment like with personal checks, since it's a guaranteed form of payment.

According to the Office of the Comptroller of Currency, you could ask the person who gave you the cashier's check to buy you another cashier's check. However, if they decline to help you, you'll have to buy an indemnity bond. An indemnity bond is a type of insurance policy that lets the bank know you are liable for losses if the lost cashier's check is cashed out, not the bank. Once you have an indemnity bond, you can notify the bank so that it can issue a replacement check.

How to avoid cashier's check scams

Real cashier's checks are one of the safest forms of payment, but cashier's check scams do exist. While there are many different variations of fake check scams, the most common denominator is that the sender will ask the recipient to send money back to them after depositing the check.

The scammer may say that they've won a sweepstakes and they've sent you a cashier's check with your reward. All you need to do is send back a small amount to cover taxes and fees.

After several days, the bank will realize that the check is counterfeit and will remove the funds from your account (and may charge you a fee as well). But if you've already sent money back over to the scammer before the check is discovered as a fake, it can be very difficult to ever get it back.

To protect yourself against these types of scams, be extremely cautious with any cashier's checks that you receive from a stranger. If someone sends a cashier's check out of the blue in the mail, that should be an immediate red flag that you could be dealing with a scam.

Also, never send money to a stranger with a gift card, wire transfer, or money order, as it is nearly impossible to reverse these types of payments. And if you have any concerns whatsoever about the legitimacy of a cashier's check, wait a few weeks before using any of the funds to make sure that it clears.

Cashier's check alternatives

For large transactions, like a real estate closing, wire transfers are the main alternative to cashier's checks. Both are examples of certified funds. Wire transfers can be faster and are best for virtual closings or international transactions. However, the fees charged on wire transfers are typically higher than cashier's check fees.

If you're looking to send a smaller amount of guaranteed funds to someone (less than $1,000), a money order could be a better option.

The difference between cashier's checks and money orders is that the latter typically charge much lower fees than cashier's checks and you don't need a bank account to take one out. Plus, money orders can be easier to replace when lost or stolen.

Cashier's Check FAQs