How to Cash a Cashier’s Check. A cashier’s check, also known as a bank check, treasury check, and teller check, is often required as a means of payment in circumstances where the transaction needs to be more secure than with a personal check. A cashier’s check is purchased ahead of time, so the recipient of the check knows that the funds are guaranteed by the issuing institution, unlike a personal check, where the recipient must trust that the issuer indeed has the funds in a personal account to cover the check.
Make Sure It’s Real BEFORE You Accept It for Payment
The number of fraudulent cashier’s checks is on the rise. Before you accept this form of payment, to protect yourself, call the issuing bank directly to ensure that it is legal. Find the phone number through your telephone directory rather than using the number printed on the check. Part of a fraudulent cashier’s check scam is placing a bogus bank phone number directed to a person involved in the scam. This person will answer the phone and very convincingly verify the check information.
Endorse and Bring Identification
You must endorse the check and will be required to produce adequate identification before you are allowed to cash a cashier’s check. Do not sign the check until you stand before the teller.
Cash at the Issuing Institution
Though not always possible due to location, the best option is to cash a cashier’s check at the issuing institution. This institution will be able to release funds for a genuine cashier’s check immediately. OR . . .
Cash at an Institution Where You Hold an Account
If you cannot cash a cashier’s check at the issuing bank, you can cash it at your own bank. The drawback to this option is that you must have available funds to cover the check if the issuing bank returns it. This can take up to several weeks to clear.
Safety Advisory
The US Department of Treasury advises only purchasing or accepting cashier’s checks from banks, savings and loans, and credit unions for your protection.
Resources – “How to Cash a Cashier’s Check“
- BankingQuestions.com – I Have a Cashier’s Check, but no Bank Account
- Cornell Law School – U.C.C. – ARTICLE 3 -§3-412. Obligation of Issuer of Note or Cashier’s Check
- FDIC: SA-67-2010: Counterfeit Cashier’s Checks Bearing the Name Anchor Bank are Reportedly in Circulation
- FDIC: FDIC Consumer News Winter 2006/2007 Special Edition: Be Prepared, Be Informed, Be in Charge
