A cashier’s check is a type of check that has the guarantee of the bank behind it. That is, a person who holds a cashier’s check will almost instantly get this check cleared. This is as opposed to personal checks and other kinds of checks which are guaranteed by an individual or group apart from the issuing bank. A cashier’s check is also known by many other names: bank check, official check, demand draft, teller’s check, bank draft, and treasurer’s check.
Having the bank guarantee a cashier’s check does not mean that you are not going to be held responsible for paying out the cash. As a matter of fact, whoever issues the check simply has to take steps to ensure that the money is already with the bank, before a cashier’s check is issued. In order for you to get a cashier’s check, you need to pay the bank the amount that will be reflected in the check. Then, when the check is cashed, the funds will be drawn from the bank and not your current account. This means that a cashier’s check will almost certainly never bounce.
Cashier’s checks are often required in purchases where deposits need to be made. The requirement for the use of a cashier’s check depends on the institution or entity that you deal with. In personal transactions, you may also request that a cashier’s check be used. However, when you do so, it is best to use a bank that is known to you so that you can further lessen the chances of being scammed.