The main difference: who holds the money and how fast it clears

A cashier's cheque is a cheque the bank writes on its own account using your money. You hand over the cash or funds upfront, the bank prints a cheque in that amount, and the recipient deposits it like any other cheque. A money order is a paper document you buy that works similarly but comes from a money order issuer — often a post office, grocery store, or cheque-cashing business — not a bank.

The practical difference comes down to clearing time and where you can get one. A cashier's cheque typically clears in one to three business days because it's drawn on the bank's own account, which means the bank has already verified the funds exist. A money order can take longer — sometimes five to seven business days — because the recipient's bank has to confirm the issuer actually has the money. Cashier's cheques are only available from banks or credit unions where you have an account. Money orders are available almost everywhere: post offices, Walmart, grocery stores, and cheque-cashing shops.

Key Takeaways

  • A cashier's cheque is issued by your bank and clears faster (one to three days) because the bank guarantees the funds; a money order is issued by a third party and typically takes five to seven days to clear.
  • Cashier's cheques cost between $5 and $15 per cheque and require a bank account; money orders cost $1 to $5 and are available at post offices, grocery stores, and other retailers without an account.
  • Both are considered safer than personal cheques because the funds are may provide, but a cashier's cheque is harder to cancel once issued.
  • For large payments (over $1,000), a cashier's cheque is usually the better choice because money orders often have per-document limits and require buying multiple orders.

Cost and where to get each one

A cashier's cheque costs between $5 and $15 per cheque, depending on your bank. Some banks waive the fee for customers with certain account types or balances. You need to visit a branch in person or call ahead to order one — most banks can issue them same-day or within one business day. You must have an account at that bank or credit union.

A money order costs $1 to $5, depending on the amount and where you buy it. The U.S. Postal Service charges a flat fee based on the order amount (for example, $1.45 for orders up to $500). Walmart and grocery stores often charge less. You do not need an account anywhere; you can walk in, pay cash, and walk out with a money order in minutes. This makes money orders accessible to people without bank accounts or those who prefer not to use them.

Speed and how long each takes to clear

A cashier's cheque clears in one to three business days in most cases. Because the bank has already confirmed the money is there when it issues the cheque, the recipient's bank treats it as a may provide payment. Some banks may hold a cashier's cheque for up to five business days if the deposit is large or if the recipient's bank has specific policies, but this is less common than with personal cheques.

A money order typically takes five to seven business days to clear. The recipient's bank has to contact the issuer to confirm the funds are real, which adds time. If you need the money to move quickly — for example, to pay a deposit by a specific date — a cashier's cheque is the safer choice. If you have a week or more, a money order works fine and costs less.

Limits on amount and number of orders

Cashier's cheques have no standard limit. You can request a cashier's cheque for $50,000 or more if you have the funds in your account. Some banks may require advance notice for very large amounts, but there is no built-in cap.

Money orders have per-document limits that vary by issuer. The U.S. Postal Service caps money orders at $1,000 each. Walmart allows up to $1,000 per money order. If you need to send $5,000, you would have to buy five separate money orders, which means five separate fees and five separate documents the recipient has to deposit. This makes money orders impractical for large payments. For anything over $1,000, a cashier's cheque is almost always the better option.

Safety and what happens if something goes wrong

Both cashier's cheques and money orders are considered safer than personal cheques because the funds are may provide — the issuer has already taken the money from you. If a personal cheque bounces, the recipient is out the money. With a cashier's cheque or money order, that cannot happen; the issuer has already verified the funds exist.

Cancelling a cashier's cheque is difficult and sometimes impossible. Once the bank issues it, the funds are essentially gone from your account. If you lose the cheque or want to cancel it, you may have to wait 90 days or longer, and the bank may charge a fee. Some banks will not cancel a cashier's cheque at all if it has already been deposited. Cancelling a money order is easier in theory — you can contact the issuer and request a refund — but it also takes time and requires proof of the order number and purchase receipt.

If a cashier's cheque or money order is lost or stolen before the recipient deposits it, the original buyer can request a replacement, but this process takes weeks and requires documentation. Neither one is as convenient to cancel as a credit card or bank transfer.

When to use a cashier's cheque

Use a cashier's cheque when you are paying a large amount (over $1,000), when you need the money to clear quickly, or when the recipient specifically requests one. Real estate transactions, car purchases, and large security deposits often require cashier's cheques because they are seen as more secure than personal cheques and clear faster than money orders.

Cashier's cheques are also the right choice if you have a bank account and can visit a branch. The cost is higher than a money order, but the speed and lack of amount limits make it worth it for significant payments. If you are paying rent, a utility bill, or a small debt, a money order is usually sufficient and cheaper.

When to use a money order

Use a money order when you do not have a bank account, when you need to keep costs low, or when the payment is under $1,000. Money orders are ideal for paying bills by mail, sending money to someone who does not have a bank account, or making a payment at a business that does not accept personal cheques.

Money orders are also useful if you want to avoid leaving a paper trail through your bank account or if you need the payment method immediately without visiting a bank branch. You can buy a money order at a grocery store or post office in minutes, whereas getting a cashier's cheque requires a bank visit and may take a day or two.

Frequently Asked Questions

Can I get a cashier's cheque without a bank account?

No. You need an account at the bank or credit union issuing the cheque. If you do not have a bank account, a money order is your option. Some banks offer second-chance accounts specifically for people rebuilding credit or without traditional banking history.

What if the cashier's cheque or money order is lost in the mail?

Contact the issuer immediately with your receipt or order number. Both will issue a replacement, but the process takes weeks and requires proof of purchase. You may also have to sign an affidavit stating the original was lost. Until the replacement arrives, the recipient will not have the funds.

Can a recipient refuse a cashier's cheque or money order?

Yes. A business or individual can refuse either one if they prefer a different payment method. Always confirm the payment method is acceptable before you buy the cheque or money order. Some landlords, for example, only accept bank transfers or personal cheques.

Is a cashier's cheque safer than a money order?

Both are equally safe in terms of the funds being may provide. The difference is speed — a cashier's cheque clears faster — and convenience. A cashier's cheque is harder to cancel once issued, which makes it riskier if you change your mind, but safer if you are worried about the cheque bouncing.

Do I need to endorse a cashier's cheque or money order when I receive one?

Yes. The recipient must sign the back of either document before depositing it, just like a personal cheque. Some banks may also require a photo ID. The signature proves the recipient is the person named on the document.