Cashier’s checks and money orders can be helpful if you are looking for a safer payment option than cash or personal checks or if your bank account is not available. There are some key differences.
Cashier’s check and money order have the biggest differences. Money orders tend to be cheaper, but they are easier to buy and are more reliable.
If you need a cashier’s check
- Purchases exceeding $1,000 are not possible
- The check can be paid for at least $10
- You have access to a financial institution and a bank account
- You need a little more protection
If you use a money order
- Purchases of $1,000 and less are acceptable
- Spend on the money order or less
- You don’t have financial access — or it’s easier to buy elsewhere.
This is how you can choose which one works best for your needs.
What Is The Best Time To Use a Cashier’s Check vs Money?
Cashier’s checks and money orders best serve large purchases. If you need to spend $5,000 on a car used, the seller will not accept a personal check. You will need another type of guaranteed payment if you don’t want to carry large sums of cash.
A cashier’s check or official check is the best choice in this situation. Although many businesses won’t accept money orders for amounts greater than $1,000, there is usually no limit to the amount that a cashier can cover.
Cashier’s checks and money order is a better option if you have to pay a 500 down payment for an apartment but can’t use your personal check.
Which Is More Expensive, a Cashier’s Check Or Money Order?
Money orders are usually cheaper. Walmart offers the lowest prices on money orders. They charge a maximum of $88 for $1,000, with a valid government-issued ID. The U.S. Postal Service charges $1.25 to $1.76 depending on the amount. Banks charge about $5.
Cashier’s checks of any amount will cost you around $10
A certain bank account is eligible for exemptions from fees by banks and credit unions.
Which One Is Easier To Buy?
It is easier to order money orders. Money orders can be purchased at banks, post offices, and other retail outlets. Are you looking for milk in a supermarket? A customer service counter could let you pick up a money order.
Cashier’s checks are available from only a financial institution where you are a member.
You won’t be able to purchase either of these items online. Many issuers require you to visit a physical place to purchase a cashier’s check vs money order. You could request that your recipient send money online if this is not possible. Venmo does not charge for users to pay with a pre-paid debit card. This is usually free if you have a bank account.
Which Is Safer: Money Order Or a Cashier’s Check?
Cashier’s checks are a bit safer. You can recover your money if you lose your cashier’s or money order or it is stolen. This makes them safer than carrying cash.
A money order is where the buyer fills out the receiver’s name, similar to writing a cheque. Learn how to make a check. Anyone could cash your money order if you forget to fill it in. You will not get your money back if someone cashes a money order.
You can contact the police to report fraudulent cashing of a cashier’s or money order.
Cashier’s checks provide a little more protection because the financial institution fills in the “pay to” line and not the buyer. A financial institution’s official check may appear more trustworthy to the recipient than a money order at your local 24-hour markets. Both options are good ways to ensure payment.
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I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go. I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.