You prefer the heightened security of a cashier’s check versus money order. This means that a money order has some limitations, so you may not be able to buy a car with it, for example. Cashier’s Check. Price- Money orders are less costly, typically running you $5. When you buy a money order, you buy it blank – and after that, you will have to fill out the contents yourself (find out how you fill out a money order here). For example, if you wanted to make a payment for $100,000 you may need 100 $1,000 money orders. You could buy more than one, but if that’s your default payment plan, costs will add up quickly. The bank will then write down a check for the person whom you intend to pay. A cashier’s check is drawn against the bank’s funds, not the money in your checking account. If you receive a cashier’s check or money order, check the document carefully. Cashier’s checks are commonly used for large purchases, like a down payment on a home, because they do not have strict caps on the amount of a transaction. You’ll need it to request a replacement or a refund if the check is lost or damaged. When to Use a Money Order vs a Cashier’s Check As a general guideline, choose a money order for smaller amounts—less than $1,000—and if you don’t have a bank or credit union account. Starting to invest? Postal Service ® money orders are affordable, widely accepted, and never expire. Cashier’s checks and money orders might seem interchangeable, but depending on the situation, one form of payment is more useful than the other. Where Can I Get a Money Order? A cashier’s check is drawn against the bank’s funds, not the money in your checking account. Should you have to pay a person and do not wish to use money or write a private check, you may use a money order or cashier's check rather than Both are believed types of payment however they vary with respect to where you are able to purchase them, once it is sensible to use one, and what they cost. While money orders tend to be cheaper and more accessible, typically costing less than $5 and not requiring a bank account, they have a $1000 dollar limit. Recipients deposit both money orders and cashier’s checks into their accounts as they would a personal or business check. Learn when you should use a cashier's check and when you should use a money order. Money orders and cashier’s checks are mode of payments that can be used to ensure that payer does not have to carry large amounts of cash on hand. With cashier’s checks, things are slightly safer, because the financial institution will be the one to fill out the name of the beneficiary. Money orders and cashier’s checks share some traits including those outlined here. Since it already has the payee’s name typed on it, a cashier’s check provides an extra level of protection for both the sender and the receiver. Cashier's checks are normally used for larger purchases, while money orders are commonly used for smaller ones. To cancel a money order, all you have to do is go with the receipt to the place where you purchased it, and they will give you a replacement. Buying Money Orders vs Cashier's Checks. Forged cashier’s checks may bounce 2 weeks after being deposited. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Money orders, although with varying prices, are a far more affordable solution. Cashier’s checks have no dollar limit, while money orders are only available up to $1,000. Both Are Similar to Checks. In addition, a person must have a bank account with the bank issuing the cashier’s check. Both are easy to get, relatively inexpensive and considered more secure and less susceptible to fraud than personal checks. However, money orders have a value limit of $1,000. That’s why many companies ask for a money order or cashier’s check as payment — to assure the funds are available at the time of cashing. There are multiple ways for you to make a payment, but money orders and cashier’s checks are among the most popular kinds. When Should I Use a Cashier’s Check vs. Money Order? When Do Checks Expire and How Do You Know? Banks ensure the availability of funds for these checks, so recipients trust them more than personal checks. I hope you have made your choice in this matchup of Cashier’s Check vs Money Order. Knowing a little about each will help you decide which is appropriate for your needs. You can purchase a money order at post offices, banks, retailers, grocery stores and check-cashing outlets or Moneygram locations, to name a few. You incur lower cost by using these instruments but may be slower in speed of delivery as compare to other forms of fund transfer methods. Cashier’s checks are more suited for large payments, whereas money orders are better for smaller ones. A cashier’s check is an official check that was issued by the bank. No cosigner required. Many individuals and businesses turn to cashier’s checks and money orders as safer forms of payment. A cashier’s check is not to be confused with a certified bank check. Both are issued by a bank or financial institution. Here’s an overview of what you’ll find in this guide about the differences between cashier’s checks and money orders: Cashier’s checks and money orders are a form of guaranteed payment because the funds are prepaid. Cashier's Check vs. Money Order: A Summary. Cashier’s checks come in handy in this scenario, because they feel more official. The worker will ask about the amount and … Cashier check and money order are physical instruments used to transfer funds from one party to another by personally handing them, sending via postal/courier service and clearing them through bank accounts for local and foreign currencies. On the other hand, cashier’s checks are available in much larger amounts (they’re commonly used for a down payment on a home, which can be … Don't forget to add news@email.gobankingrates.com as a contact to ensure you receive our emails to your inbox! Cashier checks are not used as often as they used to be, but people still use them for larger transactions such as house and car down payments. All Right Reserved. All it’s waiting for is for you to write in the name of the beneficiary. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Cashier’s checks are issued by official institutions. Besides writing about personal finance, she writes about real estate, interior design and architecture. Genuine cashier’s checks deposited into a bank account are usually cleared the next day. Personal checks will thus have the same utility in such transactions. Sending Money Orders . Like money orders and cashier’s checks, certified checks are prepaid. Money orders, on the other hand, carry extra risk. Cashier’s checks, sometimes called official checks, are often better for larger amounts. Her work has been featured in MSN, Brex, Freshome, MyMove, Emirates’ Open Skies magazine and more. Money orders are much less expensive and can be purchased in more locations that can cashier’s checks. Plus, money orders have a $800 to $1500 cap. Learn when you should use a cashier's check and when you should use a money order. Cashier’s Check vs. Money Order: Here’s the Difference Find out about these guaranteed forms of payment. 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