home → Banking & Credit → Banking & Credit 101 → What is the difference between a cashier's check and a...

What is the difference between a cashier's check and a money order?

While a cashier's check and money order are very similar payment instruments, there are a few key differences between them. The cashier's check is considered legal tender and can only be issued by a bank. A money order can be issued by a bank, post office, grocery store or convenience store. Also, the money that is used for a cashier's check is drawn from the account of the payee. Both instruments guarantee payment for the recipient. Money orders are typically used for amounts that are less than $1000, while cashier's checks are used for larger amounts. 

Check your 3 Credit Scores here for Free.

Related Articles
Can a person stop payment on a cashier's check?Difference Between a Single-Life Annuity and Joint-and-Survivor AnnuityThe Difference between Load and No-Load Mutual FundsUnderstanding the Difference between Mortgage Bankers and Mortgage Brokers
blog comments powered by Disqus