When it comes to large purchases, it simply isn’t safe and secure to carry around a stack of cash. After all, if it gets lost or stolen it’s gone for good. But what do you use when a person or business won’t accept personal checks, debit, or credit cards, or if the transaction is above your credit/debit daily limit? That’s where a cashier’s check comes in.
What is a Cashier’s Check?
A cashier’s check is considered guaranteed funds because the financial institution that issues it, rather than the purchaser, is responsible for paying the amount. Once you purchase a cashier’s check it will be valid for 90 days and must deposited or cashed by the payee during that 90 day time frame.
When Should I Consider Using it?
Any large purchase like a car or home. Or, any time you may need a little extra assurance — like if you’re buying a car from a person instead of a dealership. In some cases the payee may require it, such as with escrow companies at a home closing.
Is There a Fee?
There is typically a low fee for buying a cashier’s check.
Many financial institutions may waive these fees for certain types of checking accounts. See SESLOC’s options here.
