What is a cashier's check? What is a money order? How are they different?

Answer 1

A cashiers check is a check where the bank's cashier earmarks the money in your checking account for that amount to cover that specific check. This certifies that you can cover the check because the bank has certified you have the money.

A money order is what you buy from the post office. You give the post office the amount of money that you want to write it for, then you write they money order and send it to the payee. The post office provides the service for you for a fee.

Answer 2

To add to what is said, money orders are often limited to a certain amount ($500 of $1000, for example) while cashier's checks can be written for higher amounts. Cashier's checks are also more "official" looking.

And stick man, you're thinking of a CERTIFIED check. A cashier's check is purchased with money in your account or cash. The money is out of your account once the check is purchased and is not earmarked for later withdrawal.

Answer 3

A cashiers check comes from the bank. A money order can come from anywhere like the grocery store or gas station.

Answer 4

cashier's check is issued by a bank. Money is taken from your account and they issue a check in that amount made payable to the party of your choice.

A money order is purchased through an agent (at a 7-eleven, Wawa grocery store, post office, etc.). You pay them money and they provide a money order for the amount and charge you a fee for this service.

Answer 5

They are both very similar but you can obtain a cashiers check from a bank or financial institution and a money order you can get at a convenience store. They both charge a fee for purchase, money orders I find to be cheaper.

Answer 6

A cashiers check is drawn from money/account you hold at your bank,a money order is a "paid in advance" promisary note.