A cashier’s check was invented by the Romans but it wasn’t until the early 1500s that it became more popular while money orders came into existence in the late 18th century in Britain. In this article we shall see the Differences and see which is Safer and Cheaper between Cashiers Check Vs Money Order.
Instead of using a personal check or cash, a person can opt to use a cashier’s check or money order when choosing a form of payment. Both are considered a safer form of payment than cash but they do differ in terms of how much they cost, where you can buy them, where you can use them and when best to use them. Below are some of the answers to the questions mentioned.
What Is A Cashier’s Check?
It is a secure way of making large payments. It is signed by a bank, credit union, or any other financial institution using its funds. The money is moved from your account into theirs and then the written check is named to a third party. A small fee is usually charged on top of the amount requested.
What Are Money Orders?
A money order is purchased by giving the amount of money you want to process to the teller or the cashier who then processes the purchase for you and gives you a receipt in turn. The receipt is proof of payment and the person who receives the money will need it to get the money you have sent them.
What Are The Differences Between A Money Order And A Cashier’s Check?
The following are the significant differences between a cashier’s check and money order:
- Money orders usually have a limit of $1000 maximum while a cashier’s check has an unlimited dollar amount
- Money orders are available almost everywhere including the grocery store and U.S. Postal Service, but cashier’s checks are only found at banks or credit unions, or any other financial institutions.
- Cashier’s checks are usually issued to people with an account at the financial institution that they are getting the check from but money orders are sold to anyone who can pay the cash equivalent of the money plus the fee that is charged
When To Use A Money Order
- You can use a money order when you’re paying less than $1000
- When you want to pay in a form that is guaranteed not to bounce
- You can use a money order when you want a highly accessible and easy-to-buy form of payment and cashing
- A money order is best for when you need immediate access to money
- A money order is also best for anybody who does not have an official bank account
- A money order is also best for paying bills or for everyday transactions
When To Use A Cashier’s Check
- A cashier’s check is best when you’re making payments that are over $1000
- It is best for people who prefer using a payment method that is from a bank or a branch
- When you need a payment method that is guaranteed not to bounce
- When you don’t mind paying a large fee for the service
Which Is Safer A Cashier’s Check Or Money Order?
A cashier’s check is relatively safer because the pay to fill is filled in by the bank while a money order has to be filled in by the payee and if the payee forgets to fill in the field before the money order is lost the money is lost. Verifying and validating a check is important as scammers have begun creating fake checks.
However, a money order can be safer. It provides more privacy than a cashier’s check as a cashier’s check can list your bank account number and other personal information that is also printed on a personal check. A money order is preferable when sending via mail.
The Cost Of Cashier’s Check And Money Orders
The Cost Of The Cashier’s Check
A cashier’s check usually charges a fee of 10 to $15 depending on the bank. some banks however waived the fee for account holders who meet a certain requirement. Some banks offer free cashier’s checks to anyone with an account for example ally bank and discover.
The Cost Of A Money Order
Depending on where you purchase the money order the fee you can be charged is between 70 cents and $5.
Money orders and cashier’s checks have their differences but what matters is what they are supposed to be used for. Once this information is known it is easier to decide which method of payment is best and the safety level you need and how much of the charge you are willing to pay. Cashiers Check Vs Money Order: Differences, Safer, Cheaper These methods of payment are better than using cash and help us with paying anything and everything from everyday bills to house deposits.
Frequently Asked Questions
- Can I get a cashier’s check from any bank?
Yes, you can get a cashier’s check from any bank.
- Where can I get a money order?
You can buy a money order from your bank, a credit union, a local show grocery store or a gas station, and the post office.