Difference between Money Orders and Cashier’s Checks
Basis |
Money Order |
Cashier’s Check |
---|---|---|
Issued By |
Money Orders are available at a variety of locations, including post offices, retailers, grocery stores, and convenience stores, offering accessibility to a wider range of individuals. |
Cashier’s Checks are issued by banks and credit unions, providing a secure payment method. |
Cost |
Money Orders generally have a lower cost, ranging from $0.35 to $5, making them an economical option for many transactions. |
The cost of obtaining a cashier’s check varies but typically falls within the range of $5 to $10. |
Maximum Amount |
Money Orders are typically capped at around $1,000, limiting the amount that can be sent or received using this method. |
Cashier’s Checks often have no specific cap, allowing for larger transactions if necessary. |
Security |
While money orders are prepaid and cannot bounce, they lack the same level of security as cashier’s checks since they are not guaranteed by a bank. |
Cashier’s Checks offer security through bank-guaranteed funds, ensuring payment reliability. |
Availability |
Money Orders can be purchased at various locations, such as post offices, stores, and check-cashing companies, and they do not necessitate a bank account, providing greater accessibility. |
Cashier’s Checks are only available at banks and credit unions, usually requiring the purchaser to have an account with the institution. |