When to Use A Cashier's Check vs. Money Order
When to Use A Cashier's Check vs. Money Order
Andrew J. Dehanb Tue, January 31, 2023
There are a few options when you need a secure way of paying for something. Sure, cash is king, but not everyone feels safe carrying a thick wad around. Cashier's checks and money orders are two of the more secure options for making a payment. Each comes with its own set of advantages and disadvantages. Let's start by defining cashier's checks vs. money orders and going over their individual pros and cons. Consider working with a financial advisor as you decide where to put your money.
What's a Cashier's Check?
A cashier's check is a check issued and guaranteed by a bank or credit union. Unlike a personal check, a cashier's check comes directly out of the bank's funds instead of your checking account. These checks are more secure than personal checks for both parties as they are fully backed by the bank. That makes them great for large purchases, such as closing costs on a house or buying a car.
To get a cashier's check, you'll need the exact amount, your ID and the recipient's name. You'll be able to order one at your local branch or potentially online. You'll need to pay the bank the amount of the cashier's check, plus whatever fees they may charge. Cashier's check fees may be discounted or waived for certain accountholders. If you do a lot of business with a bank or credit union, it doesn't hurt to ask.
Lastly, get a receipt as proof of purchasing the check. You'll be able to use your receipt to track when the check is cashed.
Pros of Cashier's Checks
Great for large purchases: Cashier's checks are best used for purchases over $1,000.
Are more secure than money orders: Cashier's checks generally have more security features than money orders. And while there are cashier's check scams, there are fewer compared to money orders.
Cons of Cashier's Checks
Higher fees than a money order: A cashier's check can cost between two and 10 times more than a money order.
You must have access to a financial institution that will write your check: This can be a problem if you don't have a checking account, have recently moved or are on vacation.
What's a Money Order?
Cashier's Check vs. Money Order
To continue reading, please go to the original article here:
https://news.yahoo.com/cashiers-check-vs-money-order-140001962.html