Cashier’s Check VS Money Order
A cashier’s check is an official document that is usually issued by a bank to pay a specific amount of money to an individual or business corporation on behalf of the account holder. The payment of a cashier’s check comes from the bank’s account because purchasing a cashier’s check enables the bank to withdraw your money from your current or savings account (but not your fixed deposit account) and keep it in their account. A money order is also an official document used for payment and issued by a third party such as banks, Credit Unions, Western Unions, or MoneyGram desks. ..
Similarities Between Cashier’s Check And Money Order
They are both payment instruments. They are both issued by a third party. They are both safe. They are both used for prepayment.
Differences between Cashier’s Check And Money Order
A cashier’s check can only be issued by financial institutions which are banks, while money orders can be issued by banks, post offices, supermarkets, and convenience stores. There is a limit on the transaction amount for money orders which is standard $1000 only. In the case of a cashier’s check, you can purchase more than $1000. The money order is not generally accepted everywhere unlike the cashier’s check, which is accepted. Some financial institutions such as insurance companies and brokerage firms might not accept money orders but would consider a cashier’s check since it is generally accepted. The cost of a cashier’s check is higher than the cost of a Money order by comparison. A cashier’s check usually costs between $10 to $15 while the money order costs between $1 and $2. In the case of a stolen or lost instrument, a money order is easier to retrieve or be replaced than the cashier’s check. A lost money order would only require you to go back to the place it was purchased and ask for a replacement though it might require a fee, it can be replaced right away. A cashier’s check would take between 30 to 90 days and you would also need to purchase an indemnity bond from an insurance company. ..
When Is It Proper And How To Use A Cashier’s Check?
A cashier’s check is a type of financial instrument used to make large payments and purchases. It is a guaranteed fund, meaning that it is sure to be paid back.
People with a bank account have an advantage when using cashier’s checks. To use the cashier’s check, the individual would have to go to the bank and verify that there are enough funds to cover the check amount; The check amount is the fund the bank would hold to until the check is drawn. Then, the individual would request the cashier’s check, provide recipient’s information, and finally, pay for charges for cashier’s check. ..
When Is It Proper And How To Use A Money Order?
When making a payment, it is important to use a money order. This type of payment provides immediate and secure funds, which can be helpful in certain situations. ..
To use a money order, you may not need to own a bank account. Since the money order can be bought in the post office and supermarket, credit or debit cards can be used to purchase it. You just need to fill out the money order after purchase and pay the issuing fee. Finally, keep hold of the receipt to track the money order.
Conclusion
Cashier’s checks and money orders are safe payment methods, but should be issued when making a large payment. For example, issuing is for the payment of a building or car, and in the case of a money order, issuance should be for payment of lesser expenses such as rent, rates, or bills.
The two types of payment instruments are checks and money orders. Checks are generally a more convenient way to pay for items than money orders, as they can be drawn on a checking account or deposited into a savings account. Money orders, on the other hand, are more common in the United States and can be used to purchase goods or services.
A cashier’s check can only be purchased in the bank. Money orders can be purchased from different locations, such as banks, post offices, supermarkets, and more.
