Bookkeeping
Cashier’s Check vs Money Order: Pros and Cons
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And remember to fill out your information on the money order to avoid anyone stealing it or using it for other purposes. Getting a cashier’s check requires a little more work than a personal check. It’s important to make sure you know the amount and recipient for the check. Once you have that, you can visit a bank and speak with a teller. Once you have the check, the bank will also give you a receipt for your records. A cashier’s check is safer than a money order because the “pay to” field is filled out by the issuing bank at the point of purchase.
It can be readily cashed by approaching the issuing bank or financial institution. If the holder or payee is not a customer of the bank, they are charged a fee and asked to submit identification details, and there are other processes as well. The money order is used for small transactions, and the stated payee receives cash on demand.
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You can get a money order at many more places than a cashier’s check. However, cashier’s checks are more secure and are perfect for large purchases or payments. Cashier’s checks are generally only available at banks and credit unions, and they might only issue cashier’s checks to their own customers. A cashier’s check is safer than a money order because it’s backed by the financial institution that issued it. A cashier’s check is filled out by the bank, so the funds can’t be cashed by anyone other than who it was issued to. Cashier’s checks offer a bit more protection, because the financial institution fills out the “pay to” line instead of the purchaser.
Cashier’s checks and money orders can both be convenient, safe ways to make payments without using cash, personal checks, debit cards or credit cards. And knowing the differences between cashier’s checks and money orders—like their availability, limits, fees and more—can help you understand which option makes sense for you. Cashier’s checks are bank-backed checks that are virtually assured to clear, since they draw funds from the issuing institution rather than the payer’s account. They cost money and are typically sold by the bank only to existing customers. Calling local financial institutions and inquiring about how to get a cashier’s check from them may be your best bet. Alternatively, if you need to make a simple payment, some cashier’s check alternatives like money orders or wire transfers might be viable for certain transactions.
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If you buy more than $3,000 total in money orders in one day, you’re required to complete a form and present identification. You must complete the form and show ID even if you purchase the money orders from different post offices. By clicking ‘Continue’, you will leave our website and enter a site specific to making your loan payment via a debit card or electronic check.
Why would someone give you a cashier’s check?
When to use a cashier's check. Use a cashier's check when you need to make a large payment and a personal check or credit card isn't acceptable and paying with cash isn't safe or practical. A cashier's check is a safe, efficient payment method when a large sum of money, generally anything over $1,000, is required.
Cashier’s checks, on the other hand, are usually available only from a financial institution where you’re a member. CDs are a type of savings account with a fixed rate and term, and usually have higher interest rates cashiers check vs. money order than regular savings accounts. On the other hand, if you need to make a $500 deposit for an apartment and can’t use a personal check, a money order would be wiser because they’re generally less expensive.
Do banks give money orders or cashiers checks?
Not all banks issue cashier's checks to people who don't have accounts with them, but many banks do. Just expect to pay a fee. Money orders can be bought at a variety of places. Banks and credit unions issue them, as do many grocery stores, convenience stores, check-cashing outlets and the U.S. Postal Service.
