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A cashier's check is issued and certified by a bank on its own account. A purchaser acquires a cashier's check by paying the bank the value of the cashier's check plus any fees. Often, to obtain a cashier's check, the purchaser must have an account with the bank issuing the cashier's check. Basically, the bank withdraws the funds for a cashier's check from the purchaser's account and holds the money in an escrow account. The cashier's check will state the name of both purchaser and payee. A cashier's check does not depend on a private account and therfore a cashier's check is received as cash. A cashier's check is particularly useful when, in such transactions as real estate transfers and tax payments, a payment must be credited when received. |
