A cashier’s check, also known as an official bank check, is a payment instrument issued by a bank or credit union to a third party, usually on behalf of a bank customer who pays the bank the face value of the check. In a major transaction, such as buying a boat or a home, a cashier’s check assures the payee that the funds are there because the check is backed by the bank’s funds, so there is no risk of the check bouncing.The buyer of the cashier’s check pays the bank upfront for the full amount of the check. The bank deposits those funds and then issues the cashier’s check to the designated payee for the amount requested.The check cannot be cashed by anyone but the designated payee and settlement is usually quicker than with a personal check.When to use a cashier’s checkUse a cashier’s check when you need to make a large payment and a personal check or credit card isn’t acceptable and paying with cash isn’t safe or practical.A cashier’s check is a safe, efficient payment method when a...
