Cashier’s checks are considered a more secure form of payment than personal checks, as they rely on a financial institution for funds rather than the consumer’s personal checking account. If you need to get a one for the first time, you may have questions before you proceed. The following information will help answer some of these common questions.

A Beginner’s Guide to Cashier’s Checks 

How does a cashier’s check work?

Cashier’s checks are issued, funded, and guaranteed by a financial institution, such as a credit union. When you go in and request one, it will be printed for a specified amount and payee. That amount is transferred from your checking account (or cash deposit) to the credit union’s account where it is held until the check is cashed. You will be charged a small fee of $5 each for this service. 

What is a cashier’s check used for?

Oftentimes, cashier’s checks are required for high-cost transactions and deals involving business people who aren’t familiar with one another. They’re typically used to pay closing costs when buying a home or for the down payment on a car. Many sellers prefer them because they’re more difficult to counterfeit, and the financial institution offers extra assurance they’ll get paid.

What do I need to get a cashier’s check?

Each place that issues cashier’s checks may vary in its policies, but generally, you’ll need two forms of identification, the payee’s information, and the exact amount the check should be issued for. You must also make sure you have all the funds available in your account to cover the check and any applicable fees.

How are cashier’s checks different from personal checks and money orders?

The primary difference between a cashier’s check and a personal check is where the money comes from when it’s cashed. Cashier’s checks also have additional security features, such as watermarking or color-changing ink, and they can usually be cashed right away while personal checks may take a few days to clear.

Money orders differ in that they have a limit of $1,000 max. per money order they’re issued for and cost $3 each; but the payee can be blank for you to fill in later. Money orders are designed for smaller purchases.

If you want to obtain a cashier’s check or money order, visit Estacado Federal Credit Union in Hobbs, NM. For more than 66 years, they’ve been committed to providing customers throughout Lea, Gaines, Yoakum, and Cochran Counties with a better banking experience through personalized financial solutions. As a member, you’ll gain access to reliable savings and checking accounts, affordable loans, and a range of other products and services. Call (575) 393-1596 to inquire about joining, or browse their website to see all they have to offer.