What is a cashier's check?
Your bank will print a cashier's check for you upon request, and the teller will transfer money from your account into the bank's own account and hold the money until the check is cashed.
When you give a cashier's check, the recipient can feel confident about being paid, because the bank will make certain the money is available.
A cashier’s check can’t bounce because it's guaranteed to be legitimate.
Cashier's checks aren't free. The website MyBankTracker says you'll pay up to $10.75 for a cashier's check.
Cashier's check vs. personal check
When you write a personal check, the money is withdrawn from your personal account and may take days to clear once the recipient cashes the check.
But cashier's checks clear instantly or by the next day, even when they involve large sums of money.
Because they’re reliable and fast, cashier’s checks are most commonly used for transferring large amounts of money for big purchases.
Cashier’s checks are more trustworthy than personal checks since some people knowingly write checks that won't clear. But a recipient will always know that the amount on a cashier's check is valid.
When you’ll need a cashier's check
When someone asks for a cashier’s check, it’s not that they don’t trust you — they just trust your bank teller more.
If you’re purchasing a car or a house, you can expect to be asked for a cashier's check for the full cost or for a down payment. It's the most secure and fastest way to prove you have the money for the purchase.
Buying a house? Use our calculator to determine your mortgage payment.
Anytime you’re receiving a large payment from someone you don’t know, you can ask for a cashier’s check.
Selling a car? If the buyer would rather not show up with a wallet full of cash, that’s fine. Just request a cashier’s check instead.
Never accept a personal check in these situations. It may be difficult to get hold of the buyer if the check doesn’t clear.
How to get a cashier's check
If you need to use a cashier's check, the easiest and fastest way to obtain one is in person at your home bank.
A teller can quickly confirm that your funds are legitimate and cut the check for you.
Some banks will provide you a cashier’s check even if you don’t have an account there, but the process can be much slower.
Here's how to save up to $700/year off your car insurance in minutes
When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.
It’s true. You could be paying way less for the same coverage. All you need to do is look for it.
And if you look through an online marketplace called SmartFinancial you could be getting rates as low as $22 a month — and saving yourself more than $700 a year.
It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side.
So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.