Cashier’s Check or Money Order? A Complete Guide

A cashier’s check is a better option when you have to pay a large sum of money through your bank account for some purchase but if you do not have a bank account you can use a money order to pay someone.

If you are thinking about whether you should use a cashier’s check or money order to pay someone this guide will help you a lot. I am going to answer all of your questions related to the cashier’s check or money order.

Let’s start with the basics

What is a Cashier’s Check?

A cashier’s check is a check issued by the bank on your behalf.

Let’s say you have made a purchase and it is of a house that your wife loves. Of course, you can not use online payment platforms for such purchases. You can either use a personal check or a cashier’s check to pay.

Most of the time sellers prefer a cashier’s check over a personal check because there are chances that a personal check may get declined but a cashier’s check is a guarantee that the seller will receive money.

What is a Money Order?

A money order is purchased when you have to send money to someone and you don’t have a bank account.

Sometimes people do not have a regular banking and checking account so it is not possible for them to get a cashier’s check for payment. A money order can be used in this case. You will have to pay the cash upfront to any company that processes money orders and your payment will be delivered.

The money order is now being replaced by other means of sending money like Netspend, you can send or receive money on Netspend if you have a bad credit history or if you don’t have a checking account.

You can visit post offices, MoneyGram, Western Union, or retail stores to purchase a money order.

Should I Use Cashier’s Check or Money Order?

The answer to this question is, It Depends, Money orders have a limit, you can not send money if your payment exceeds that limit. You can not purchase a money order exceeding $1000.

A cashier’s check however is not limited by this, if you have money in your account, just fill in the number that you want.

Should you use a Cashier’s Check or Money Order? You have to answer this question yourself. Check out these differences between both methods.

Cashier’s Check Vs. Money Order

Cashier's Check or Money Order

Which one is safer Cashier’s Check or Money Order?

Safety is definitely one of our main concerns when it comes to payments. After all, we are paying from our hard-earned money. So which one of the methods is safer, A cashier’s check or money order?

Both of the methods are pretty safe arguably. As both are initiated by well-established and well-known financial organizations. However, the cashier’s check is much safer than the money order. It is because Cashier checks are issued by the banks and payments are made from the funds of banks.

Money orders are a bit less safe than the cashier’s check.

Which one is faster Cashier’s check or Money Order?

Most of the time we want to send or receive money as quickly as possible, and for this, you have to choose between cashier’s check or money order.

As far as the speed of availability of the funds is concerned. Both of the methods are equally fast. once deposited you will see the funds in your account within the next business day. Both methods guarantee quick funds transfer.

Cashier’s Check Or Money Order: Cost Analysis

If both of the methods are equally safe then why chose from them. Well, my friend, there are differences that you also need to know. One of the major differences in the fee that you have to pay for the fund’s transfer.

Cashier’s checks cost more, while Money orders are cheaper. This chart shows the difference between the fee for sending a money order from different companies. The fee for a cashier’s check ranges from $10 – $15 depending on the bank.

Cashier's Check or Money Order

What is a Cashier’s Check used for?

A cashier’s check is issued and backed by banks and is used to make payments. If you are using a Cashier’s check for the payment, your payment will never be declined as it is made from the funds of the bank.

Cashier’s check is used when you have to pay a large amount, for buying a car or a house. Your Landlord can also demand a cashier’s check for payment security.

What is a Money order Used For?

A money order is used to send or receive money if you do not have a bank account. You will pay the cash up front and then the recipient can collect it from any money order point, money orders can also be used to send money to bank accounts.

You can use a money order to deposit bills. More often a money order is used to send money overseas.

Will a Cashier’s Check Clear Immediately?

A cashier’s check is known for speed and security. A cashier’s check will clear immediately and the funds will be available to your account immediately or the very next business day.

If you have deposited a regular personal check, it can take up to 7 business days for your funds to be available. Your personal check can also bounce and cause further delay. However, a Cashier’s check will clear immediately and your funds will be available in your account.

Is Cashier’s Check Like a Money Order?

There are a few similarities between a cashier’s check and a money order but they are more different than the same. For a money order, you do not need to have a bank account, but for a cashier’s check, you are required to have a regular checking or savings account.

A cashier’s check is backed by the bank and you don’t have to pay in cash but to purchase a money order you have to pay the cash first. You can only get a cashier’s check from a bank but money orders can be purchased at retail stores, post offices, banks, Walmart, CVS, and MoneyGram franchises.

Cashier's Check or Money Order

MoneyGram has lower transfer limits and a lower fee, you can only send up to $1000 through money gram, the fee, however, is low and may vary depending on the service provider.

A cashier’s check is used for large payments and requires a higher bank fee. Banks are of course safer than any other institutes when it comes to money.

It depends on the nature of your payment whether to choose a Cashier’s check or money order for your payment.

How to Get a Cashier’s Check?

You can get a cashier’s check from your bank. Sometimes banks only issue a cashier’s check if you have an account with them. It is better to check the requirement of your bank. Once done, all you have to do is follow the steps below.

Simple Steps To Get a Cashier’s Check:

  1. Visit the bank
  2. Ask the teller for a cashier’s check
  3. Provide your ID
  4. Give your bank information
  5. Provide the information of Payee
  6. Specify the exact amount that you want to pay

How to Purchase a Money Order?

Just like getting a cashier’s check, you can also purchase a money order easily. All you have to do is visit the nearest post office or MoneyGram. Follow these simple steps to purchase a money order

Simple Steps to Purchase a Money Order:

  1. Visit the post office, MoneyGram, Retail Store, Western Union
  2. Get the Money Order form
  3. Fill in the exact details of the payee
  4. Sign the form
  5. Submit the money order form
  6. Give the cash that you want to send
  7. keep the receipt to track your money order.

Verdict

Cashier’s check or money order, both are a faster way of getting money. You can choose either of them depending on your needs. Just keep the limitations of each method in your mind to avoid any complications.

I hope this article was helpful and you have learned everything about the cashier’s check and money order. Share your thoughts about these methods, let me know which method do you prefer and why?

Your thoughts and suggestions are always helpful to me as well as other readers, feel free to share.

Cheers…

 

Frequently Asked Questions

 

Cashier’s Check or Money Order which one is better?

If you want to send a large amount and you have a bank account, a cashier’s check is definitely better and safer. If you do not have a bank account and you want to send money faster, use Money Order.

Can you get a cashier’s check online?

Yes, it is possible to get a cashier’s check online If your bank or credit union offers an online cashier’s check. Follow these steps to get an online cashier’s check.

  • Log in to your online banking account
  • Select account for a cashier’s check
  • Tap on “order checks”
  • Select “Cashier’s Check”

What is the maximum amount for a cashier’s check?

There is no upper limit to the amount that you can send through a cashier’s check. This may vary depending on your bank’s policy.

Where to get a cashier’s check without a bank account?

You can not get a cashier’s check if you don’t have a bank account. It is because a cashier’s check is only issued by a bank or credit union. If you have a bank account you can easily get the cashier’s check.

 

 

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