Why Use a Cashier’s Check
There are several advantages to using a cashier’s check. This kind of check is great for larger dollar amounts and may prevent you from needing to buy multiple money orders. It is considered more secure than a money order and some payees may specifically request them.
The money is backed by the bank and it’s considered “guaranteed funds.” Landlords may request that a security deposit be made by cashier’s check. In addition to being reliable funds, this is a way to prove that the potential tenant has a bank account that’s in good standing.
Cashier’s Checks are Good for Large Purchases
Cashier’s checks are typically used for larger purchases. Although the policy may change from bank to bank, generally there’s no upper limit for a cashier’s check. The payee typically has quicker access to a larger amount of the funds with a cashier’s check.
Cashier’s Checks are Safer to Use
Cashier’s checks are generally considered more secure than money orders. Although there are check scams involving fake cashier’s checks and money orders, a cashier’s check has more security features than a typical money order. Also, a cashier’s check is backed by a bank and may carry more clout with the payee than being backed by a check cashing store.
Why Use a Money Order
There are many advantages to using a money order. A money order is convenient and inexpensive. Grocery stores, post offices, check cashing stores and many other places sell money orders. The fee to order a money order is typically a couple dollars or less, depending on where you purchase it.
A money order is also great for when you want more privacy. A cashier’s check may list your account number and other information typically printed on a personal check. A money order doesn’t have this information, which makes it especially useful for sending money through the mail. Finally, you don’t need a bank account to get a money order.
Money Orders Cost Less
Money orders are typically used for smaller amounts than cashier’s checks and that is reflected in the fee to purchase one. Depending upon where you purchase a money order, the fee ranges from $0.35 to $2.00. Money orders are typically capped at $1,000. Some places may limit them to smaller amounts.
If you need to purchase multiple money orders to get around the limit, you may be better off getting one cashier’s check for the full amount. If you’re buying several money orders because you’re paying different bills, then multiple money orders should be less expensive than getting several cashier’s checks.
Money Orders are Easier to Buy
A money order is easy to buy. They are often sold in places that you’d visit during the normal course of your week: grocery stores, post offices, some big box retail stores, etc. You could pick one up when you’re buying groceries or running errands. On the other hand, a cashier’s checks can only be bought at a bank.