What is a cashier's check?

A cashier's check is a form of payment that is guaranteed by a bank. It is considered to be a secure and reliable form of payment because the funds are drawn directly from the bank's own account rather than the payer's account. This means that the bank itself is responsible for ensuring that the funds are available and that the check will be honored. Cashier's checks are often used for large or important transactions, such as purchasing a home or a car, because they provide a level of security and assurance to the payee that the funds are guaranteed. They are also commonly used when the payee requires a certified form of payment, as they are considered to be more secure than personal checks or money orders. In order to obtain a cashier's check, the payer must provide the bank with the full amount of the check, plus any associated fees. The bank then issues a check in the payer's name, which can be made payable to a specific individual or organization. The payer can then give the cashier's check to the payee as a form of payment. Overall, a cashier's check is a secure and reliable form of payment that provides assurance to the payee that the funds are guaranteed by the issuing bank. It is often used for important or high-value transactions where a certified form of payment is required.