A cashier's check is a check issued and guaranteed by a bank. It’s drawn from the bank’s funds, not yours, though you must have enough in your account to cover the check amount. Cashier's checks are often used for large payments, like a car or down payment on a home. They assure the recipient that the funds are available and the check won't bounce.
How to get a cashier’s check
To obtain 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. You’ll need to provide the bank with some details, including the recipient’s name and the amount. Be prepared to show a valid ID, and keep in mind that there can be a fee for issuing a cashier’s check.
When you might 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. You might need a cashier’s check to make a down payment on a home or buy a car. You may also need a cashier’s check when renting an apartment, as some landlords require guaranteed funds before handing over the keys.
What happens if you lose a cashier’s check?
If you lose a cashier’s check, the process for getting a replacement is somewhat complex.
If you misplace a cashier’s check, contact your bank immediately to report it missing. You’ll likely have to fill out a declaration of loss form and may need to purchase an indemnity bond. An indemnity bond is a type of insurance that guarantees you will be liable instead of the bank if the check is cashed. You may have to wait a certain period — generally 30 to 90 days — before the bank can issue a replacement or refund. There can also be a fee to replace or cancel the lost check.
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 heftier fees than cashier’s checks.
- Certified checks are similar to cashier’s checks, but the money is backed by your personal bank account instead of 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 a cashier’s check, the funds are not guaranteed, and the check can bounce. If you lose a personal check, it can be easier to issue a stop payment.
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.
