A valid cashier’s check from a reputable bank will not bounce.
More Info: The benefit of receiving a valid cashier’s check is knowing that it has already been paid for up front. The purchaser of a cashier’s check will pay for the check, and the funds will then be drawn from the issuing bank. The bank is, in a sense, the middleman holding the money to ensure its availability when the funds are drawn.
Be warned that the key words that satisfy the negative answer are ‘valid’ and ‘reputable’. It is always possible that a fraudulent cashier’s check or one purchased from a less than reputable institution could bounce.
How Does a Cashier’s Check Work?
A cashier’s check is a method to pay for goods and services with funds guaranteed by a bank. If you write a personal check to a vendor, the vendor has no way of knowing if your check is good. They may delay the transfer of a product you purchased until your check has actually cleared. A cashier’s check must actually be “purchased” at your bank with good funds. The check is drawn on the bank’s account, and the bank is responsible for the payment of it.
Where Can You Cash a Cashier’s Check?
A cashier’s check is most easily cashed at the issuing bank. If the check is made out directly to you, just take it to the bank it was drawn on, bring proper identification, and the process should be easily completed. You can also take the check to your own bank, but they may delay the availability of some or all of the funds until they can authenticate the check. There have been many recently reported scams concerning cashier’s checks, so banks are exceedingly cautious when asked to cash them.
Quote: “If a bank refuses to pay its cashier’s check, it may be liable to the presenting party for compensatory damages and consequential damages. The bank has an “out” only if it can assert a claim or defense against the person entitled to enforce the instrument.”
Source: John Burnett BOL Guru-Stopping Payment on a Cashier’s Check
“Uniform Commercial Code – Article 3.” LII | Legal Information Institute at Cornell Law School. N.p., n.d. Web. 29 June 2011. <http://www.law.cornell.edu/ucc/3/article3.htm>.
“Cashier’s Check Definition.” Investopedia.com. N.p., n.d. Web. 7 July 2011. <http://www.investopedia.com/terms/c/cashierscheck.asp>.
Rankin, Deborah. “STRATEGIES; Cashier’s Checks Are Like Cash, So Take Care in Handling Them – New York Times.” The New York Times – Breaking News, World News & Multimedia. N.p., n.d. Web. 7 July 2011. <http://www.nytimes.com/1994/08/13/business/strategies-cashier-s-checks-are-like-cash-so-take-care-in-handling-them.html>.