How to Cash a Cashier's Check at a Bank

Cashing a cashier's check is usually a simple process.

A cashier's check--also known as demand draft, teller's check, bank draft or bank check--is a check guaranteed by a bank. Treated as cash by most financial institutions, a cashier's check usually clears instantly, freeing up face value funds for the person cashing the check. Because of the rise of fraud, banks are cautious when cashing these types of checks. Take steps in order to ensure that redemption is handled expeditiously.

Things You'll Need

• Personal identification

Instructions

1. Before setting out for your financial institution to cash in your bank draft, confirm that the check is valid. According to the Missouri attorney general's office, criminals have figured out a way to make nearly foolproof copies of cashier's checks. If you know the person who gave you the cashier's check, there is little reason for concern. If not, you should call up the financial institution whose name is on the check first to validate its authenticity.

2. Expect to be required to show one or more forms of personal identification when redeeming your cashier's check. Make sure that your driver's license is up to date and consider bringing along other ID including your passport.

3. Visit your financial institution to cash your check if possible. Your bank is likely to release funds immediately if you have active accounts with it. Other banks may refuse to cash your check if the check is written by another bank and if you do not have an account with them. Take your check to a teller for redemption.

4. If there is a problem with the cashier's check, you may not find that out until a few weeks after the check has been cashed. If the bank uncovers fraud or if the originating financial institution refuses to honor the check, those funds can be debited from your account. In addition, you may be hit with a bad-check fee. Monitor your account to make sure that the check did not bounce; review your bank statements for the following two months to confirm same. If in doubt, visit your local bank branch and have a representative confirm that the check cleared.

Tips & Warnings

• Inspect the cashier's check closely before cashing it in. If you hold it up to the light, you should see a watermark, security thread and color-shifting ink.

• Overpayment scams involving cashier's checks are prevalent especially when involving strangers. Familiarize yourself with the tips offered by the Federal Trade Commission to avoid being ripped off (see References).

References

• Missouri Attorney General: Cashier's Check
• Federal Trade Commission: Giving the Bounce to Counterfeit Check Scams
• Federal Trade Commission: Check Overpayment Scams: Seller Beware

Resources

• National Fraud Information Center: Fake Check Scams