Where To Cash Cashiers Checks – A cashier’s check is a type of payment that gives guaranteed money to the recipient. It is often used for dollar transactions, such as buying a car or making a down payment on a home.
Here’s how a cashier’s check differs from a personal check, certified check or money order, as well as how to get one and when you might need to.
Where To Cash Cashiers Checks
A cash check works like a personal check but with one key difference: Instead of the check being guaranteed by money in your bank account, it’s guaranteed by the bank or credit union that issued the check.
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In addition to having a bank or credit union guarantee, cashier’s checks often come with added security features, such as a watermark or signatures from two bank or credit union officials.
When you apply for a cashier’s check, you’ll pay the issuing financial institution, either with cash or a withdrawal from your bank account. The check is scanned for you, with the name of the person or business you are paying on the recipient line. You cannot receive a blank check.
Cashier’s checks are often required when making large purchases in which the seller needs a high level of assurance that the check will not bounce.
Because they’re one of the most secure payment methods available, they also tend to clear faster than personal checks—usually by the next business day. However, large checks may be held for longer than that to ensure they are not fraudulent.
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While some recipients may require a money order to complete a transaction, you may be able to use a certified check or money order instead in some situations.
A certified check is a type of personal check drawn from your checking account rather than a bank or credit union. But as an added security, the issuing bank or credit union certifies that funds are available for the check amount at the time it is written.
The bank or credit union also confirms that the signature on the check is genuine and sets the amount that should be used for that transaction only. That action essentially guarantees the check won’t bounce.
A certified check can be a good option when the purchase is large enough that you cannot use a money order, and using a cash or personal check would be impractical.
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Money orders are similar to cashier’s checks in that they are both payable and guaranteed by the person issuing the check instead of the buyer. With a money order, however, the guarantor is usually a company like Western Union, the US Postal Service or a retailer like Walmart, not a bank or credit union.
Money orders are also usually easier to buy as opposed to a money order or cashier’s check because of their wider availability. If you need to send money securely or make an appliance or rent payment, a money order may be enough. Cash orders are usually limited to $1,000, however, which means it may not be an option if you need to make a large purchase.
Cashier’s checks may be required on larger transactions, such as when buying a car, motorcycle, boat or RV from a private party or dealer. It may also be possible to use one to close on a home purchase, although the title company may ask for a wire transfer instead.
If you’re making a large purchase like a car or house, ask the seller, dealer or title company about the payment methods they accept.
How To Verify A Cashier’s Check To Avoid Fraud
You can get a cashier’s check from any bank or credit union, but you may need to be an existing customer to purchase one. Whether you’re going to a local branch or submitting your claim online, here are some of the steps you’ll need to take.
Because a bank or credit union issues a cashier’s check with its own funds, it will require you to pay the amount of the check up front. You can do this with cash or cash from your checking or savings account. In some cases, you may need to pay a small fee.
If you want to withdraw the funds for a cashier’s check, though, you may need to provide some form of identification.
The bank or credit union prints out the cashier’s check, including the payee’s name and the amount of the check. This means that you will need to have all the necessary information ready to give to the seller.
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Once your request is complete, the bank will freeze the amount of the check or withdraw it from your account balance, along with any applicable fees. Once you have the check in hand, make sure you also ask for a receipt, which can be helpful if you need to track the check or if it goes missing.
In general, cashier’s checks are among the most secure payment methods available. But even with the security features they include, they are not completely immune to fraud. Here are some best practices to keep in mind.
If you don’t know who gave you the check, it’s best to avoid using the money until the check clears your bank. This usually only takes a day, but may take longer depending on the bank and the amount of the check. Avoid buyers who want to give you a cashier’s check for more than the purchase price or who give you checks with wrong papers or no security features. These are both signs of common cash check scams.
If you are receiving a check in the sale of a car or other valuable item, consider making the sale on clearance of the check instead of when the buyer gives it to you. If the buyer refuses, you can always find someone else.
Typo And Memo In Cashier’s Check
If you buy a bad cashier’s check before issuing it to the recipient, the bank will require you to buy a cashier’s bond before issuing a new one. The bond ensures that you will be responsible for the original check instead of the bank if it is found and used for payment. You can also buy an indemnity contract from selected insurance companies, but it is not easy to get one, so protect the income check as you will make money.
Cashier’s checks are a safe way to send money or make a payment, but they’re not always necessary. Because some banks charge a fee to issue a cashier’s check, check with the cashier to see what other options are available. If you can complete the transaction with a more convenient and less expensive option, you may be able to save both time and money. To be sure of the option that best suits your needs, learn more about cash checking vs. approved check.
If you need a cashier’s check, though, make sure you have the money and information you need, and treat the check just like you would cash until you give it to the recipient. At that point, they are responsible for storing it until they deposit or pay you.
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Cashiers Checks Vs Money Orders
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