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How Cashier's Checks Work and Other Bank Checks

Updated on December 2, 2011

Different Checks for Different Needs

There are times in life when our personal checks aren't what is needed, and a cashier's check or other types of checks are more appropriate or helpful. Most of the time, our personal checks are fine for most all of our transactions. Once in a while there is a situation that arises where our checks need a payment guarantee. Usually, this is involving larger sums of money. When we buy a new home for instance, that is one situation where it may be a better way to go. Another example may be if you are being shipped an expensive product, and the merchant is across the globe. Often, people in both parties are fine with a credit card transaction, but not everyone is set up with that capability either. When a merchant doesn't want to have to worry about cancelled or possible delayed payments, they may opt for a different type of check with a greater guarantee.

Luckily, many banks offer options that are agreeable to both parties to complete a larger transaction. Sometimes, banks even offer these check services to people that don't have accounts with them. Just ask around and you may find just what you need. Sometimes, travel companies, credit card companies and the US Postal Service can help with getting a check or a check substitute. By making a few quick phone calls, often a person can find what they need quickly.

Union National Bank, Texas
Union National Bank, Texas

Cashier's Checks or Bank Checks

Cashier's checks sometimes go by the name of Bank Checks. The reason they are called bank checks is that the money is "drawn" directly against the banks account, and the bank can vouch for that. It is not just drawn from a persons personal checking account which may have a lot of activity going on with it. For larger sums of money, a person or company can feel much more assured the money is 100% good, because the bank is saying so and drawn against its funds.

Basically, a cashier's or bank check is made out after a person has given the bank the amount of money (at least) for the amount they want the check for. The person's name that the the money is coming from, as well as going to, is also on the check of course. The bank employee does all of this with it being printed rather than handwritten which makes a mistake or alteration far less likely to impossible. They will often sign it, and then it is yours. You should have a copy of it, for your own records. Cashier's or bank checks are not returned to you. These kinds of checks cost less than a certified check. These checks can't have a stop payment once they reach their destination. The other types of checks to look into for your different banking needs will be Certified Checks, Money Orders, and Traveler's Checks.

Old Bank in Cambridge, Massachusets
Old Bank in Cambridge, Massachusets

Have you ever used a Cashier's Check Before

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    • oceansnsunsets profile image

      Paula 5 years ago from The Midwest, USA

      Hi George, no, they are two different kinds of checks, used for different purposes. When people use traveler's checks while traveling, they have added safety in case you are robbed, for instance they are insured. People use cashiers checks as a form of payment for different things. They can come in handy when a personal check isn't working for a transaction for whatever reason. Some ebay sellers for example, won't take personal checks, but will take a cashiers check. Glad you stopped by, thanks.

    • profile image

      george 5 years ago

      is the cashier's checks same as travelers checks?

    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Thank you Rpalulis, I really appreciate the visit, read, and comment.

    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Thank you Phoenix, I appreciate that very much!

    • rpalulis profile image

      rpalulis 6 years ago from NY

      You know I have never used a cashier's check before and never actually ever given much thought as to why I would use one, thanks for explaining how Cashier's Checks work and other bank checks, this makes a lot of sense.

    • PhoenixV profile image

      PhoenixV 6 years ago from USA

      Excellent information thank you, voted up.