cashier's check

noun
Updated on: 13 Oct 2017

Definition of cashier's check

:a check drawn by a bank on its own funds and signed by the cashier

First Known Use of cashier's check

1867


Financial Definition of CASHIER'S CHECK

cashier's check

What It Is

A cashier's check is a check that guarantees the availability of the underlying funds because it is drawn upon and issued by the bank itself.

How It Works

To obtain a cashier's check, a person must first deposit funds equal to the check amount with the issuing bank. The bank then generates a check to the payee drawn on the bank's own account. The name of the remitter (the person purchasing the check) is noted on the check. The check is signed by a bank cashier or officer.

Banks typically charge a fee for cashier's checks.

Why It Matters

Only under extremely unusual and rare circumstances will a cashier's check bounce. Because the bank assumes the obligation for payment, thereby ensuring a high degree of safety, some institutions require that payments be made via cashier's check.


CASHIER'S CHECK Defined for English Language Learners

cashier's check

noun

Definition of cashier's check for English Language Learners

  • : a check that is written by a bank and signed by a cashier


Learn More about cashier's check


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