A cashier’s check also called a bank check, is another form of guaranteed payment. However, you’ll need a bank account to get a cashier’s check. When you purchase a money order, the bank will either accept cash or direct debit your account. Most banks charge a fee for money orders, though they may waive the fee if you have certain types of accounts with them. When purchasing a money order, you’ll need the amount of the money order and the name of the payee. Avoid making the money order out to cash, and always keep your receipt. The maximum amount of money orders is $1,000. Once you purchase the cashier’s check, the funds will be removed from your account and transferred into the bank’s account. (That’s how they guarantee payment.) Once the check is cashed or deposited by the payee, then the funds will be removed from the bank’s account. Most banks will only issue a cashier’s check to a customer since you need a bank account to get one. Traditionally, cashier’s checks are considered a safer payment method than a personal check since the funds are guaranteed. They are also safer for you since they don’t contain your account number. The original money order or cashier’s check doesn’t clear, and then you are left out of the money you sent back, as well as any money you may have spent from the original amount since you thought it was yours to keep.
