Sometimes you have a need for a cashier’s check instead of a personal check because certain institutions want to make sure the money is good as soon as possible. If you have a need for a cashier’s check you are basically guaranteed that the check is valid or good. First the bank will accept your money for a cashier’s check that you want issued and then you provide the bank with the person or company that the check should be payable to along with the amount. The teller or sales associate will print out a computer generated check for the dollar amount and who the check is payable to. When checks are computer generated in this manner it keeps anyone from committing fraud by trying to change any of the details of the check such as the amount or the person it is payable to.
Your name can appear on the check in the following manner, RE: John Smith, right under the recipient’s name.
The bank teller then signs the check and turns it over to you. Also attached to the check is a stub or voucher which you can hold on to for your records and proof that you made the payment. Once the check is cashed you never see it again. Cashier checks are not returned. Actually personal checks are not returned anymore but these can be viewed online or you can receive truncated copies when you get your monthly statement.
If you don’t really need a cashier’s check then It would be advisable not to order them because they are costly. Banks can charge you anywhere from $7 to $10 and of course these fees can and will vary from bank to bank. Make sure you know how much you are paying for a cashier’s check before you request one. Other avenues to pursue are money orders. They don’t cost nearly as much and you can really cut the cost of a money order by purchasing them at the post office.
Always compare the different options that are available to you before you purchase costly and sometimes unneeded products or services from your bank. Many times you will be able to get a much cheaper product or service form another establishment. You may also want to compare the different products or services that are offered between banks. If one bank is able to provide you with cheaper products you may want to consider moving your entire relationship to that bank. Everyone’s situation is different so make sure it is well worth your while before you switch banks. This can be a timely adventure especially if you have direct deposit and automatic transactions to switch over
