Any bankers on DU? Can you answer a question about cashier checks?

[intheflow]

I always heard that cashier checks are as good as cash. But I just deposited a cashier's check and my bank told me the funds wouldn't be available until Tuesday. This is my paycheck, because the last two paychecks I deposited there had 10 day waiting periods, and quite honestly, my rent can't wait. So until a direct deposit can be set up (later this month), the bookkeeper sent me a cashier's check so it would clear immediately.

I found this on the Federal Reserve web site, but it's from a letter dated from 1998. Here's what this excerpt says:

Regulation CC defines "cashier's check" as a check that is (1) drawn on a bank, (2) signed by an officer or employee of the bank on behalf of the bank as drawer, (3) a direct obligation of the bank, and (4) provided to a customer of the bank or acquired from the bank for remittance purposes (12 CFR § 229.2(i)).

To me, a check that is drawn on bank funds = guaranteed funds and so should be exempt from check waiting periods. Does anyone know what the current banking regulations are with regards to cashier's checks?

[Midlodemocrat]

1. I think it is exempt, much like a treasurer's check from a bank would be

I would talk to the manager at your bank. If you don't get anywhere, cash the check at the bank that issued it and deposit the cash.

[intheflow]

4. I had to deposit it.

If I pay my rent later than Tuesday, I get whacked $50 each additonal day it's late. :( So it was either deposit it now and get the funds on Tuesday, or get whacked whacked whacked by my landlord. :(

Part of the problem right along has been that the bank where my paycheck is drawn doesn't have any local branches in this area. So even though it's in the same state (I'm in Biloxi, MS, and the payroll account is in Oxford, MS), it's treated as an out of state check.

[Midlodemocrat]

6. In the past, I have had to deposit large checks that had a 'hold' on

them, but the bank would always pay against the hold. In other words, if I wrote a check, like you intend to do for your rent, they would cover it.

I would contact a branch manager and see if they could help out in some way.

[intheflow]

7. My SO says I should talk to the Branch Mgr, as well.

So I guess that's what I'll do tomorrow. Thanks for the help! :hi:

[MrCoffee]

2. There's nothing inherent in a cashier's check that makes it "good as cash"

All it is is guaranteed funds, just like my personal check is guaranteed by me. If your bank wants to put a hold on it, they can.

[InkAddict]

3. Sorry, treated as any ordinary check

subject to the same holds and only gradually released for use in your account, drawn on the cashing bank or not!

[intheflow]

5. Are you a banker?

Do you know the banking regulation that defines that? :shrug: I wouldn't be so insistent except that my bookkeeper told me the bank the payroll is drawn on recommended this option to her because "a cashier's check is as good as cash."

[Crabby Appleton]

8. There have been a lot of check scams

lately involving counterfeit cashier's checks. Talking to the branch manager is a good idea.

see:

http://www.gcglaw.com/resources/financial/cashiers.html

[intheflow]

9. Thanks.

This was quite helpful. :hi:

[ScreamingMeemie]

10. They should have cashed it, so says my mom (Regional bank manager 20 years

Not only are the funds guaranteed...the funds have been removed from the account and placed in a separate account, thus ensuring the fact that they are there. As for cashier check fraud, the dilligence is on the part of the bank which the check is drawn upon, not the bank that cashes it. Hope that helped.