Finance is a complicated world in which banking is central and plays a very important role in this field. There is a long list of things that one needs to be careful about when dealing with money. Transferring money safely and with a minimum fee is the priority of customers. There are many types of checks available for many different reasons. Personal checks can be used for paying bills, buying something. Cashier checks are used when you want more security. There are many places and people who cashes cashier check near me besides banks so one doesn’t need to worry about limiting freedom of choosing places for getting one’s money.
Cashier’s check gives more security to clients when moving their money, making payment, or receiving payment and they are used by banks or credit unions by paying some money as a fee.
What Is A Cashier’s Check?
Cashier’s check is written against the bank’s account unlike personal checks which are cashed against checking accounts. It is preferred by many clients when they wish to make a transfer of a large amount of money and want additional security, and the bank would provide guarantee for payment. This will give the payee a confidence that payment would not be returned for insufficient funds.
How Do Cashier’s Checks Work?
When a bank issues a cashier’s check to a person to pay a certain amount first they will ensure if they have the money to issue the check. They will take money from the clients account and put it in the bank’s account and for this service banks take a fee from them. When a check is issued it will have the payee’s name and how much they are paying but not their account information. Check will have account information of the bank printed at the bottom.
When the person receiving the check will cash this check amount will be deducted from the bank’s account and not from the payee’s account.
With this method there is less chance of check bouncing and provides higher security for who cashes cashier checks.
Which Is A Better Cashier Check Or Money Order?
It is very easy to get confused about cashier check and money order but there are few variations that differentiate them.
Money order is a type of prepaid check, where you will provide money and only then will you be able to issue money orders.
Cashier check and money order both can be ordered from the banks and credit unions. But only money order is available at local grocery stores and post offices as well.
Cashier checks offer security so there is less chance of fraud. But on the other hand money can be a high risk payment option as there are many types of scams recorded.
When Do You Use A Cashier’s Check?
As mentioned earlier, a cashier’s check provides security when a large amount of money needs to be transferred. But when would you like to make payments securely.
- Paying university tuition fee
- Buying or selling house
- Buying or selling vehicle
- Receiving money from lawsuit settlement
- Security deposit for an apartment and Many more such circumstances.
Profit And Loss By Using Cashier Check
Until now we have only talked about the benefits of using a cashier check but everything has two sides so we are going to discuss pros as well as cons of using cashier’s check.
Drawbacks of using cashier’s check
There is a fee attached when issuing a cashier’s check. Banks take on an average $5-$10 as fee for even issuing the check. Places and people who cashes cashier check near me also take small fees for cashing checks as well. So it can get quite expensive.
To get a cashier’s check you will need to visit your bank branch if they don’t offer online service and in most cases they don’t offer this service. And that can be inconvenient for many people. Most people would drop the idea and just write a personal check to do away with this problem.
Although they provide additional security, they are not completely secure as well. They can be counterfeited and other parties probably won’t be able to recognize the difference until they went to a place who cashes the cashier check near you.
Cashier check gets cleared much faster than other checks. For most checks it takes up to five business days to clear a check with a large amount of money but as the cashier check is already guaranteed it gets cleared much faster.
There is much higher security for the cashier’s check. There are unique watermarks and other insignia which prevents it from being counterfeited by con man. There is also a policy that only a person who can cash cashier checks is the person for whom the check was issued.
As payment amount has been already deducted from your account it ensures payment will be done properly and it won’t get bounced for insufficient funds.
There are many places other than bank who cashes cashier check near me such as private organization, grocery stores, etc. It is an untrustworthy world out there so be very careful about scams, stealing or losing cashier checks.