Cashier's check vs. money order vs. certified check: Which one do you need?

By Kat Tretina

Whether you're putting a down payment on a car or placing a security deposit on an apartment, sometimes a personal check isn't sufficient. In those cases, you may need a cashier's check, money order or certified check instead. In this breakdown of the differences between a cashier's check vs. money order vs. certified check, learn about these payment methods' functions, costs and security features.

What is a cashiers check?

A cashier's check is a type of payment method that is guaranteed by the issuing bank or credit union, and it's signed by the bank teller or cashier. When you buy a cashier's check, you pay for the check amount on the spot. You can usually pay in cash, or the money is deducted directly from your existing banking account.

When the check is cashed, the funds are withdrawn directly from the bank's own funds, so the bank acts as a guarantor. Because the check is backed by the bank, it tends to be one of the safest payment options. As a result, it's a preferred payment method for large transactions, such as buying real estate or a new vehicle.

While a personal check can take several days to clear, the funds provided through a cashier's check are usually available the next business day after cashing — a major perk for sellers who want their money quickly.

Typically, you need to have an existing bank account with the bank you're trying to get a cashier's check from, and you'll have to pay a fee. Fees vary by bank and location, but you should generally expect to pay anywhere from $5 to $15. Some financial institutions will make exceptions and issue cashier's checks to non-customers, but they usually charge higher fees for that service.

Pros of cashier's checks

• Cashier's checks are guaranteed by the issuing bank.
• There is no maximum limit for cashier's check amounts.
• The recipient can quickly access the money after depositing the check.

Cons of cashier's checks

• Many banks and credit unions require you to be an existing customer to purchase a cashier's check.
• Cashier's checks have higher fees than money orders.

What is a money order

Money orders are a popular payment method. In fact, the Verifying U.S. Postal Service Money Orders that it issued 63.3 million money orders in 2023.

Money orders are purchased in cash. Because you've paid the full check amount at the time of purchase, they're a more secure payment method than a personal check; the recipient doesn't have to worry about the check being returned. Money orders are commonly required for transactions like leasing an apartment; some landlords require you to use a money order for your security deposit.

Money orders do have limits. The maximum amount for a money order is $1,000, so they're not a good choice for larger transactions.

Money orders are usually purchased at the post office, but you can also buy them at some grocery stores and convenience stores. When you buy a money order, you pay the cashier the check amount in cash — plus a fee — and the money order is made out to the recipient. The issuer will give you a receipt, and the recipient can cash or deposit the check.

There is a fee to purchase a money order. Depending on where you buy the money order, the fee can range from $1 to $4.

You don't need a bank account to purchase a money order, making them a useful option for those who don't have a checking or savings account.

Pros of money orders

• Money orders are relatively inexpensive.
• You don't need a bank account to purchase a money order.
• They're available from several locations.

Cons of money orders

• The maximum limit for a money order is $1,000.
• There may be an added fee to purchase a money order with a credit card.
• Money order fraud is a common issue.

What is a certified check?

A certified check is a personal check that the payer's bank has verified is real and that they have enough funds to cover the check amount.

A certified check provides more security and peace of mind than a personal check, because it reduces the risk of it being returned for insufficient funds.

Because a certified check is guaranteed by you as the writer of the check, your personal details are included, so they aren't a good option if you want to protect your privacy.

Like cashier's checks, certified checks are purchased through a bank or credit union. Certified checks require you to pay a fee, but they tend to be less expensive than cashier's checks.

Pros of certified checks

• The bank verifies the check sender has enough funds to cover the check amount.
• Certified checks are less expensive than cashier's checks.
• They're more secure than personal checks.

Cons of certified checks

• Not all banks or credit unions offer certified checks.
• Your personal information is on the check.

Cashier’s check vs money order

Cashier's checks and money orders are two common, secure payment options. The better option for you depends on the transaction amount and the type of transaction you need to complete.

Cashier's checks don't have upper limits, so they make sense when you need to write a check for more than $1,000. They tend to have higher fees, but, because the bank guarantees the check, they are the more secure of the two options.

Money orders are suitable for transaction amounts under $1,000. They're relatively inexpensive, and you don't need a bank account to get one. You can visit any U.S. post office to purchase a money order. Most grocery stores also offer this service.

Cashier’s check vs certified check

Cashier's checks and certified checks are similar in that they are purchased through a bank or credit union. However, the key difference is the guarantor — the party responsible for funding the check. A cashier's check is guaranteed by the bank, and the check amount is withdrawn from the bank's funds. By contrast, a certified check is guaranteed by the customer and withdrawn from that person's account.

Cashier's checks are more secure and provide more privacy, since they only include the bank's details on them. However, they are often more expensive than certified checks.

Certified checks are a good option if you need a secure payment method, but you don't mind your personal details being revealed.

Watch out for scams

Although cashier's checks and money orders are secure payment methods, scammers frequently use them in their plans to steal money. Common scams include employment scams and online sales scams. They follow similar structures: The fraudster sends you a cashier's check or money order and tells you to deposit it, but asks you to send them a portion of the cost to cover expenses like shipping or background checks.

After depositing the check or money order and sending the money, the bank notifies you the check wasn't valid, and you lose the money you sent.

To avoid this problem, double-check a potential employer's legitimacy by looking the company up on the Better Business Bureau site. And, contact the bank or credit union behind the cashier's check to verify it. If it's a money order, the post office has a site detailing traits to look for to verify a money order's legitimacy. To verify a postal money order, you can call the Money Order Verification System at 1-877-876-2455. Learn more about how to protect yourself from fraud by visiting the Citizens Cybersecurity Center.

Ensure you have access to the right form of payment

Whether you need a cashier's check, money order or certified check, getting the right payment method is easier when you have a good bank behind you. If you have a checking account with Citizens, you can enjoy convenience and customer service, making it easier to send money or complete large transactions quickly.

In need of a checking account? Open a new checking account online today and learn how Citizens is made ready to support you on your financial journey.