Cashier’s checks and money orders are both forms of payment that can be used instead of cash or personal checks. However, there are some key differences between the two. A cashier’s check is issued by a bank, while a money order can be purchased from a variety of places, including the post office, convenience stores, and check cashing stores. Cashier’s checks are generally considered to be more secure than money orders, but they also tend to be more expensive.
What is a Cashier’s Check?
A cashier’s check is a type of check that is guaranteed by the bank that issued it. This means that the bank has already deposited the money into the account and that the check will not bounce. Cashier’s checks are typically used for large transactions, such as buying a car or making a down payment on a house.
What is a Money Order?
A money order is a type of prepaid check that can be purchased from a variety of places like retail stores, gas stations, banks, convenience stores, etc. Money orders are typically used for smaller transactions, such as paying rent or utilities. Money orders are not guaranteed by a bank, but they are still considered to be a safe form of payment.
Which is Cheaper: A Cashier’s Check or a Money Order?
The cost of a cashier’s check or money order will vary depending on the bank or location where you purchase it. However, in general, cashier’s checks are more expensive than money orders. This is because banks have to cover the cost of guaranteeing the check.
Here is a table comparing the price of a cashier’s check and money order:
| Feature | Cashier’s Check | Money Order |
|---|---|---|
| Cost | Typically $10-$20 | Typically $5-$10 |
| Availability | Only available at banks | Available at banks, post offices, convenience stores, and check cashing stores |
| Processing time | Can take a few days | Typically available immediately |
| Maximum amount | Usually higher than the maximum amount for a money order | Usually lower than the maximum amount for a cashier’s check |
Please note that these prices are just estimates and may vary depending on the bank or location where you purchase the check.
When Should You Use a Cashier’s Check?
You should use a cashier’s check when you need to make a large, secure payment. Cashier’s checks are a good option for buying a car, making a down payment on a house, or paying rent.
When Should You Use a Money Order?
You should use a money order when you need to make a smaller, secure payment. Money orders are a good option for paying rent, utilities, or sending money to someone you don’t know very well.
Conclusion
Both cashier’s checks and money orders are safe and secure forms of payment. However, cashier’s checks are more expensive than money orders. If you are making a large purchase, a cashier’s check is the best option. If you are making a smaller purchase, a money order is the better choice.
Additional Information
Here are some additional things to keep in mind when choosing between a cashier’s check and a money order:
- Convenience: Cashier’s checks are typically only available at banks, while money orders can be purchased from a variety of places.
- Time to get: Cashier’s checks can take a few days to process, while money orders are typically available immediately.
- Maximum amount: The maximum amount you can get for a cashier’s check is usually higher than the maximum amount you can get for a money order.
Ultimately, the best way to decide which form of payment is right for you is to consider your specific needs and circumstances. In general, a money order is cheap compared to a Cashier’s check.