Cashing a cashier's check is a straightforward process, but it's essential to handle it with care. According to the Federal Deposit Insurance Corporation (FDIC), cashier's checks are among the safest forms of payment due to being issued by banks themselves. To cash one, visit your bank where you hold an account and present the check for deposit. Your bank will verify your identity to ensure security, as noted in a report by Forbes. Funds typically clear within one to two business days, as per the Expedited Funds Availability Act, making the money available in your account. Understanding how to cash a cashier's check is crucial for accessing your funds promptly and securely.
The Easiest Place: Your Own Bank
To cash one, visit the bank where you hold an account and present the check for deposit. Your bank will verify your identity to ensure security, as noted in a report by Forbes. Funds typically clear within one to two business days, as per the Expedited Funds Availability Act, making the money available in your account.
What About Other Banks or Locations?
At one time, cashier's checks were viewed as very secure forms as payment that were almost as good as cash. This is because the check is issued by a bank on its own holdings, meaning that the money is virtually guaranteed, barring closure of the bank between the time the check is issued and the time it is cashed. This method of payment was often used between two parties when one will not accept a personal check from the other, for fear that the check will not clear. Fraudulent cashier's checks, however, have made the process of trying to cash a cashier's check more difficult.
Though theoretically you should be able to cash a cashier's check at any bank, many banks will require you to have an account at that bank before cashing the check. This is because the check still needs to clear, and if you do not have an account at the bank, and the check turns out to be fraudulent, the bank has less recourse. Other places where you might be able to cash a cashier's check include:
- Check cashing stores (fees will likely apply)
- Large retailers (e.g., Walmart, Target) with money services
- Some grocery stores and travel centers
Before You Cash a Cashier's Check
Typically, when you cash this type of check, the funds will be deposited into your checking account; then, if the check does not clear, you will be responsible for it. This is why it is extremely important to verify the authenticity of any cashier's check you receive by placing a phone call to the issuing bank, which will be able to tell you in a few minutes if the check is valid.
How to Cash the Check
Otherwise, cashing a cashier's check is a simple process as long as you bring your identification, and the check is made out to you. Endorse the check properly as well by signing your name the way it appears on the check. You may choose to wait until the check clears to use the funds, but in most cases with verified checks, it is safe to use the funds as soon as they are given to you.
FAQ
Can I cash a cashier's check at any bank?
While you can theoretically cash a cashier's check at any bank, it's easiest to do so at your own bank. Banks often prefer to cash cashier's checks for their own customers. If you don't have a bank account, or your bank is unwilling to cash the check, you may have success at the issuing bank (the bank where the cashier's check was originally purchased).
Are there fees for cashing a cashier's check?
Fees vary depending on where you cash the check. Your own bank may cash the check for free. The issuing bank may charge a small fee (often around $10). Other locations, such as check-cashing stores or retailers, typically charge higher fees, so it's best to explore traditional banking options first.
How long does it take for a cashier's check to clear?
Thanks to the Expedited Funds Availability Act, funds from a cashier's check should typically be available in your account within one to two business days. However, banks can sometimes place longer holds on funds if they suspect fraud or have other security concerns.
Do I need an ID to cash a cashier's check?
Yes, you'll need a valid government-issued photo ID to cash a cashier's check. This helps the bank verify your identity and prevents fraudulent activity. Common forms of acceptable ID include a driver's license, passport, or state-issued ID card.
What should I do if I suspect a cashier's check is fake?
Unfortunately, fraudulent cashier's checks are a problem. If you have any doubts about the authenticity of a cashier's check, don't try to cash it. Instead, contact the issuing bank directly (find their phone number online, not on the check itself) to verify the check's validity. According to the FDIC, looking for watermarks and security features can help you spot potential fakes.