What is a Cashier's Check?
A cashier's check is a check that guarantees the availability of the underlying funds because it is drawn upon and issued by the bank itself.
How Does a Cashier's Check Work?
To obtain a cashier's check, a person must first deposit funds equal to the check amount with the issuing bank. The bank then generates a check to the payee drawn on the bank's own account. The name of the remitter (the person purchasing the check) is noted on the check. The check is signed by a bank cashier or officer.
Banks typically charge a fee for cashier's checks.
Why Does a Cashier's Check Matter?
Only under extremely unusual and rare circumstances will a cashier's check bounce. Because the bank assumes the obligation for payment, thereby ensuring a high degree of safety, some institutions require that payments be made via cashier's check.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
You can elect to buy more stock with it, adding to your...Read More →
From the world's top hedge fund managers to the local financial advisor, you'll hear a similar refrain: "I never use ...Read More →
As of July 1, there are 396 funds trading for less than the per-share value of their portfolio assets....Read More →
The bond market is a massive part of the global financial system. In fact, it's almost twice as large as the ...Read More →