Should I Get a Cashier’s Check or a Money Order?

iQuanti: When you need to quickly and securely transfer funds to someone, like putting down a security deposit on a new place or sending money to a friend, forking over cash may not be the best option. Money orders and cashier’s checks are two secure forms of payment that offer the additional protection and reliability that cash may not. If you need added payment security, here’s how to know whether you should get a cashier’s check or money order.
What is a money order?
A money order is a secure way to transfer money that’s basically a prepaid check. And it’s easy to get one from the post office or a store like Walmart or Western Union. Money orders don’t cost much to purchase, often only a dollar or two in fees. But they are also subject to lower amount limits, typically around $1,000.
You don’t need a bank account when purchasing a money order, making them an excellent option for many people. And when you make the transaction, you’ll receive a receipt so that you can easily track the money order and see when it gets delivered.
What is a cashier’s check?
A cashier’s check is like a personal check, but they’re only available at a bank. The cashier’s check is written from the bank’s account, not yours. When you request one from your local bank, you’ll need to provide the recipient’s name and the amount you want to pay. The bank will then immediately transfer the amount from your account to the bank’s account and issue the check.
While cashier’s checks come with a higher fee, often around $10, they don’t have amount limits like money orders. This payment method make sense when you need to pay a large sum of money, like when making a down payment on a house.
When should I use a cashier’s check vs. money order?
It may be better to use a money order when:
A cashier’s check typically makes more sense when:
The bottom line
Both cashier’s checks and money orders serve the purpose of providing a more secure form of payment than cash or a personal check. But which option you choose ultimately depends on how much money you need, whether you have a bank account, and what level of security you need. Not only will a money order or cashier’s check provide a secure form of payment for a reasonable price, but it also guarantees your payment won’t be turned away for insufficient funds, which can make you a more reliable buyer.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.