A cashiers check is a type of check that is guaranteed by a bank, drawn on the banks own funds, and signed by a cashier or teller. Cashiers checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount. They are often used for large purchases, such as a car or house sale, when you likely cant use a debit or credit card, and using cash is risky. Cashiers checks are also used for transactions where the payee wants reassurance that the check won’t bounce.

Cashiers checks are different from tellers checks, also known as bankers drafts, which are checks provided to a customer of a bank or acquired from a bank for remittance purposes and drawn by the bank, and drawn on another bank or payable through or at a bank. They are also different from certified checks, which are personal checks written by the customer and drawn on the customers account, on which the bank certifies that the signature is genuine and that the customer has sufficient funds in the account to cover the check.

To purchase a cashiers check, you need to provide the bank with the exact name of the payee, the business or person you are paying, and the precise amount of the check. You also need to have your ID ready, as the teller will probably ask to see it. Canceling a cashiers check is generally not an option, and if you lose a cashier’s check, the bank may require that you get a new one.

Most banks issue cashiers checks only to their own customers, so youll typically need an account to get this type of check from a bank. Credit unions often issue cashiers checks to members of other credit unions and their members. Cashiers checks are bank-backed checks that are virtually assured to clear, since they draw funds from the issuing institution rather than the payers account. They cost money and are typically sold by the bank only to existing customers.