A cashier's check is a check drawn against a bank's funds and signed by an employee of the bank. This is a guaranteed check that will not bounce. Many buyers must use a cashier's check -- as opposed to a personal check -- to qualify to purchase a big ticket item, such as a car or a down payment on a home.
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Obtaining a Cashier's Check
Go to your bank and request a cashier's check in the amount needed. The bank employee will check to make sure the amount needed for the cashier's check is in your account. If you go to a financial institution where you do not have an account, a bank employee will contact your bank to ensure that your account has enough funds to cover the withdrawal. A banker will write the cashier's check, made out to the payee, and sign her name to the bottom. The signature makes it legal tender and a guaranteed check. In most cases, you will be charged a fee for a cashier's check. Such fees are often higher at a bank at which you have no account.