Question about checks clearing

[cheyita]

OK, so say you have a cashier's check from a local bank that you are depositing into another bank in town. Why does it take a couple days for it to clear? I thought cashier's checks were supposed to be like cash. And even so, since it's two in-town banks, shouldn't it only take a day?

 

[Pop Daddy]

it only clears quickly if the bank is getting the money

 

[Nancy]

I understand your point. You can't get a cashiers check without actually giving the bank the Cash to pay for it. If it is technically "cash" why does it have to sit with a hold on it for more then 24 hours? The 2nd bank knows 100% for sure that they will get their money for it.

 

[GoofieRuthie]

Cashier checks are not like cash, they are gauranteed funds. Meaning the bank already got the funds up front for the check when it was purchased. Even if you are depositing it into another local bank it takes 2 days to clear because it will go through proof at the first bank, then the rest of the chain. Then it will hit the other bank by the next day and should be cleared by the end of that business day. Depending on a banks policy, a hold can be placed on the cashiers check if it's for a large sum. (like the bank that I work at) This upsets a lot of people because they think a cashier check is the same as cash. I hope I answered the question without being too confusing.

 

[lovetheparks]

We recently ran into this problem - took 5 working days from one in-town bank to another. I was amazed that a cashier's check from a major bank was not treated as cash.

 

[cheyita]

Cashier checks are not like cash, they are gauranteed funds. Meaning the bank already got the funds up front for the check when it was purchased. Even if you are depositing it into another local bank it takes 2 days to clear because it will go through proof at the first bank, then the rest of the chain. Then it will hit the other bank by the next day and should be cleared by the end of that business day. Depending on a banks policy, a hold can be placed on the cashiers check if it's for a large sum. (like the bank that I work at) This upsets a lot of people because they think a cashier check is the same as cash. I hope I answered the question without being too confusing.

Thank you for your explanation, although I still don't know exactly why - since the funds are guaranteed - it needs to go through all that. However, I suppose a bank can crash or have some major error and then those funds wouldn't really be available. I think our bank used to have next day availability, but it seems that they don't anymore. Thanks for the answer.

 

[malibuconlee]

OK, so say you have a cashier's check from a local bank that you are depositing into another bank in town. Why does it take a couple days for it to clear? I thought cashier's checks were supposed to be like cash. And even so, since it's two in-town banks, shouldn't it only take a day?

Cashier's checks USED to be as good as gold. No longer. My MIL works at a bank here and actually accepted one that wasn't any good.

Sadly, it's the theives that are making life for the rest of us harder.

Also, although they're in town, the money may still haveto be transferred from bank to bank via the Fed.

 

[GoofieRuthie]

Cashier's checks USED to be as good as gold. No longer. My MIL works at a bank here and actually accepted one that wasn't any good.

Sadly, it's the theives that are making life for the rest of us harder.

Also, although they're in town, the money may still haveto be transferred from bank to bank via the Fed.

Also very true. We get a dozen notes a day about fake cashiers checks. A cashiers check is treated just like any other check now. I'm a teller, and we have to look at a persons account. We base our decision on whether to place a hold on a check on your account history. If you have a strong history, with little to no NSFs, and make regular deposits, then most likely we won't place a hold.