What a cashier's cheque is and when you need one

A cashier's cheque is a cheque drawn on the bank's own account, not yours. The bank guarantees the funds are there because it has already taken the money from your account. This makes it safer than a personal cheque for the person receiving it — they know it will not bounce.

You need a cashier's cheque when someone will not accept a personal cheque because they need certainty the payment is good. Common situations include buying a car from a private seller, making a down payment on a house, paying a contractor a large sum upfront, or sending money to someone you do not have an ongoing relationship with. Some landlords also ask for a cashier's cheque as a security deposit instead of a personal cheque.

A cashier's cheque costs money — usually between $5 and $15 per cheque, depending on your bank — but that fee is the price of the may provide. The recipient can deposit or cash it like any other cheque, and it clears faster than a personal cheque because the bank has already verified the funds.

Key Takeaways

  • A cashier's cheque is may provide by your bank because the bank draws it on its own account after taking the money from yours.
  • You order a cashier's cheque in person at your bank branch, by phone, or online, and the bank charges a fee of roughly $5 to $15.
  • The bank will ask for the exact amount, the recipient's name spelled correctly, and sometimes the reason for the payment.
  • A cashier's cheque clears faster than a personal cheque and cannot bounce, which is why sellers and landlords often request one.
  • If you lose a cashier's cheque or it is stolen, contact your bank immediately; you may need to wait before a replacement is issued.

How to order a cashier's cheque from your bank

Visit your bank branch in person, call the customer service number on the back of your debit card, or log into your online banking portal — most banks now offer all three options. Tell the bank you want a cashier's cheque and provide the exact amount, the full name of the person or business the cheque should be made out to, and your account number.

If you order in person, bring your debit card or ID and be prepared to pay the fee immediately. The bank will print the cheque on the spot or within a few minutes. If you order by phone or online, the bank may mail it to you or ask you to pick it up at a branch. Turnaround time varies: in-person orders are instant, phone orders usually take one to three business days, and mailed cheques take longer depending on postal delivery.

The bank will ask you to spell the recipient's name correctly — this matters because a cheque made out to "John Smith" cannot be cashed by "Jon Smith" without the bank's permission. Some banks also ask what the cheque is for, though this is optional information. Do not leave the payee line blank; a blank cheque can be filled in by anyone who handles it.

What information goes on a cashier's cheque

A cashier's cheque has the same basic layout as a personal cheque: your bank's name and routing number, a cheque number, the date, the payee line (who it is made out to), the amount in numbers and words, a memo line, and the bank's signature. The key difference is that the cheque is drawn on the bank's account, not yours, so the account number shown is the bank's, not your personal account number.

The date on the cheque matters. A cheque is generally valid for six months from the date written on it, though some banks honour them longer and some shorter. If you post-date a cheque (write a future date), the bank will usually not cash it before that date, but do not rely on this — tell the recipient the actual date you want them to deposit it. If the cheque is stale-dated (older than six months), the recipient's bank may refuse to cash it, and you will need to ask your bank for a replacement.

Fees and what they cover

Most banks charge between $5 and $15 per cashier's cheque. Some banks waive the fee if you maintain a minimum balance, have direct deposit set up, or hold a premium account. A few banks charge nothing for cashier's cheques as part of their account benefits. Call your bank or check your account terms to find out what you pay.

The fee covers the bank's may provide and the cost of issuing the cheque. It does not cover replacement if you lose the cheque or if it is stolen — that is a separate process that may take time and may cost extra. Some banks will issue a replacement quickly if you can prove you did not receive the original, but others require you to wait the full six-month validity period before issuing a new one, to make sure the original does not surface and get cashed twice.

What to do if you lose a cashier's cheque or it goes missing

Contact your bank immediately. Tell them the cheque number, the amount, the date, and the payee name. The bank will put a stop payment on it, which means if someone tries to cash it, the bank will refuse. This protects you from the cheque being cashed by someone else.

Ask the bank whether they will issue a replacement right away or whether you need to wait. Some banks replace it within a few business days. Others require you to wait until after the six-month validity period has passed, to ensure the original cheque does not get deposited after you have already received a replacement. If you need the money to go through quickly, explain the situation — the bank may make an exception, or you may need to use a wire transfer or another method instead.

If the cheque was stolen, you may also want to file a report with your local police, though this is mainly for your records. The bank's stop payment is what actually prevents the cheque from being cashed.

Cashier's cheque versus other payment methods

A wire transfer is faster and more direct — the money moves electronically from your bank to the recipient's bank, usually within one business day. But wire transfers cost more (typically $15 to $30) and cannot be reversed once sent. A cashier's cheque is slower but cheaper and can be stopped if something goes wrong before it is deposited.

A certified cheque is similar to a cashier's cheque but is drawn on your personal account. The bank certifies that the funds are there and sets them aside, so it will not bounce. Certified cheques cost less than cashier's cheques (often $5 to $10) but are not quite as safe because they are still tied to your account. Some recipients accept certified cheques; others insist on a cashier's cheque.

A money order is a prepaid cheque-like instrument you can buy at a bank, post office, or convenience store. Money orders are cheap (usually $1 to $5) and safe, but they have a lower maximum amount (often $500 to $1,000) and are not suitable for large transactions. For a down payment or a car purchase, a cashier's cheque or wire transfer is the standard choice.

Why recipients ask for a cashier's cheque

A cashier's cheque eliminates the risk that your personal cheque will bounce. If you write a personal cheque and do not have enough money in your account, the cheque fails and the recipient has to chase you for payment. With a cashier's cheque, the bank has already removed the money from your account, so the recipient knows the funds are may provide.

This is especially important in high-value transactions. A real estate agent or car dealer will not accept a personal cheque for a $20,000 down payment because the risk is too high. A private seller might accept one if they know you, but most will ask for a cashier's cheque or a wire transfer to protect themselves. Landlords often ask for a cashier's cheque as a security deposit for the same reason — they want proof the money is real before you move in.

The recipient can also deposit a cashier's cheque at their own bank and it will clear faster than a personal cheque. Personal cheques can take three to five business days to clear; a cashier's cheque often clears within one or two days because the funds are already may provide.

Frequently Asked Questions

Can I get a cashier's cheque if I do not have enough money in my account?

No. The bank will only issue a cashier's cheque if you have the full amount in your account. The bank removes the money from your account when it issues the cheque, so if the funds are not there, the bank will refuse. If you need the cheque but do not have the money yet, ask the recipient if you can pay by wire transfer on a later date or use a different payment method.

How long does a cashier's cheque take to clear?

A cashier's cheque usually clears within one to two business days because the bank has already may provide the funds. A personal cheque can take three to five business days. The exact timing depends on the recipient's bank and whether they deposit it in person or by mobile app, but a cashier's cheque is always faster.

What if the recipient's name is spelled wrong on the cashier's cheque?

The recipient cannot cash it without the bank's permission. If the name is misspelled, contact your bank immediately and ask for a replacement. Do not give the cheque to the recipient and hope they can fix it — they will have to go to their bank and request a correction, which takes time and may not be approved. It is faster to get a new cheque from your bank with the correct spelling.

Can I cancel a cashier's cheque after I have ordered it?

Yes, but only before you give it to the recipient. Contact your bank and ask them to cancel it and refund your money. If you have already given the cheque to the recipient, you cannot cancel it — you can only ask them to return it or put a stop payment on it if it goes missing. Once the recipient deposits it, the money is gone.

Do I need a receipt when I order a cashier's cheque?

Yes. Ask the bank for a receipt showing the cheque number, amount, payee name, and date. Keep this receipt until the cheque has been deposited and cleared. If the cheque goes missing or there is a dispute, the receipt proves you ordered it and when. Some banks print a receipt automatically; others require you to ask for one.