Key insights:
- A cashier’s check is a check that is drawn from the bank's funds rather than your own, making it guaranteed by the bank, if your bank offers this product.
- Cashier’s checks are commonly used in large transactions, such as home or vehicle purchases
- To get a cashier’s check, you typically need to visit your bank or credit union and have the funds to cover the check readily available, although some banks may allow you to get one online
A cashier’s check is a check issued and guaranteed by a bank. It’s drawn from the bank’s funds rather than yours, which is different from a certified check. But to get one, you must have funds in your account to cover the check amount, or you can provide cash to a bank teller. Cashier’s checks assure the recipient that the funds are available and the check won’t bounce
When do you need a cashier’s check?
Cashier’s checks are often the preferred — or required — payment method for large transactions where carrying cash isn’t practical. Some instances in which you may be asked for a cashier's check include:
- Down payment on a home
- Buying a vehicle
- Renting an apartment
A cashier’s check essentially serves as peace of mind to the recipient that the check won't bounce. Since the funds have been certified by the bank, they're considered a very trustworthy payment method.
How do I get a cashier’s check?
To get a cashier’s check, you’ll need to visit your bank or credit union. Some institutions may allow you to order a cashier’s check online.
You must have enough funds in your bank account to cover the check, or you can provide cash to the bank teller. You’ll typically need to provide the bank with some details, including the recipient’s name and the check amount. Be prepared to show a valid ID, and keep in mind that there may be a fee for issuing a cashier’s check.
How long does a cashier’s check take to clear?
If you deposit a cashier’s check in person, federal regulations require banks to make the first $6,725 of funds available by the next business day. Any amount exceeding $6,725 can be held by the bank to verify authenticity and transfer money between banks for up to 7 business days.
Holds may be extended for additional reasons, including if:
- The depositing bank account is less than 30 days old
- There’s reasonable cause to believe the check is fraudulent or uncollectible
What happens if you lose a cashier’s check?
If you lose a cashier’s check, the process for getting a replacement is more complex than simply signing a new piece of paper. The step-by-step process may vary slightly between banks, but generally looks like this:
- Contact your bank immediately to report it lost: You’ll likely have to fill out a declaration of loss form and may be required to purchase an indemnity bond. This type of insurance guarantees that you will be liable instead of the bank if the check is found and cashed by someone else.
- Wait for a reissue: You may have to wait a certain period — generally 30 to 90 days — before the bank can issue a replacement cashier’s check or refund.
- Pay fees: There may also be a fee to replace or cancel the lost check.
The sooner you report a lost cashier’s check, the sooner the bank can help you get a replacement issued.
Cashier’s check alternatives
Alternatives to cashier’s checks include:
- Digital payments offer a quick and convenient way to send money without the need for paper checks. However, there may be limits on how much you can send and the number of payments you can make in a set period.
- Wire transfers allow you to send money electronically, though they can come with higher fees than cashier’s checks.
- Certified checks are similar to cashier’s checks, but they are backed by your personal bank account rather than the bank’s funds.
- Money orders are typically used for smaller amounts. Like cashier’s checks, they’re prepaid. Money orders often have a maximum limit, so they might not be ideal for large purchases.
- Personal checks may be an acceptable method for smaller transactions. Unlike cashier’s checks, personal checks are not guaranteed, and the check can bounce. If you lose a personal check, it may be easier to issue a stop payment.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
