What's the difference between a cashier's check, a certified check, and a money order?
A cashier's check is drawn on the bank's own funds and guaranteed by the bank; a certified check is still your personal check with funds set aside; a money order is prepaid up to $1,000. Only USPS money orders and cashier's, certified, and teller's checks get Regulation CC's next-business-day deposit guarantee.
All three get requested as a "guaranteed" payment for the same situations — closing on an apartment, buying a used car, a large security deposit — but they're guaranteed by different things, cost different amounts, and only some of them carry a specific federal next-business-day deposit guarantee.
Three different guarantees
- Cashier's check: drawn on the bank's own account. The bank takes the money from you up front and issues a check backed by its own funds, not yours — closer to as-good-as-cash because the guarantee comes from the bank's balance sheet.
- Certified check: still your personal check. The bank confirms your signature and that your account has enough money, then sets that amount aside until the check clears. The funds technically stay in your account, drawing on your balance rather than the bank's.
- Money order: prepaid — you hand over cash (or sometimes a debit card) up to a fixed cap and get a paper instrument for that exact amount. It can come from the U.S. Postal Service, a bank, or a retailer/wire service like Western Union or MoneyGram; the cap is set by the issuer, not your account balance.
The rule that actually separates them: Regulation CC's next-day list
Under Regulation CC, 12 CFR 229.10, federal law requires banks to make certain low-risk deposits available for withdrawal by the next business day. That list specifically names cashier's, certified, and teller's checks, Treasury checks, and — by name — U.S. Postal Service money orders. A money order from a retail store, check-cashing outlet, or private wire service isn't on that federal list, so it doesn't carry the same next-day guarantee even though it looks and functions the same way at the counter.
The next-day guarantee has conditions
It applies only when the check is deposited into an account held by a named payee, in person to a bank employee, and with a special deposit slip if the bank requires one. A mobile-deposited or ATM-deposited cashier's check doesn't automatically qualify — your bank's ordinary hold schedule can apply instead, and it can place a longer hold if it has reasonable cause to doubt the check.
What each one costs
A USPS money order is capped at up to $1,000 per order, with a $2.65 fee for orders up to $500 and $3.75 for orders between $500.01 and $1,000. Cashier's and certified checks aren't capped by federal rule, but they're not free — the fee is set by your bank. Wells Fargo's published fee summary, as one example, lists a $10 fee for a cashier's check on its Everyday Checking account; other banks' disclosures run roughly $6–$15 depending on the institution and account tier.
What the rules say
- Regulation CC's next-day-availability list names cashier's, certified, and teller's checks, plus U.S. Postal Service money orders specifically — deposited in person to a named payee, with a special deposit slip if required. — Cornell Legal Information Institute — 12 CFR § 229.10 (Regulation CC)
- Banks must make the first $6,725 of cashier's, certified, or teller's checks deposited in a single day available on the standard next-day schedule; only the amount above that threshold can be held longer. ($6,725 effective July 1, 2025, up from $5,525.) — Consumer Financial Protection Bureau — Regulation CC Threshold Adjustments final rule
- A USPS money order tops out at $1,000 per order, with tiered issuance fees. — United States Postal Service — Money Orders
Key takeaways
- A cashier's check is bank-funded; a certified check is still your personal check with funds set aside; a money order is prepaid up to $1,000.
- Only cashier's, certified, and teller's checks, plus USPS money orders by name, get Regulation CC's next-business-day deposit guarantee — private money orders don't.
- The next-day guarantee requires an in-person deposit to a named payee; mobile/ATM deposit can lose that protection.
- USPS money orders have a hard $1,000 cap and a small fixed fee; cashier's/certified check fees are set by your bank, typically $6–$15.
- For amounts under $1,000 without an existing bank relationship, a money order is usually simplest; for larger amounts, sellers typically expect a cashier's check.
If you're comparing checking accounts on cashier's-check fees and other account costs before you open one, ClearValue Banking's account comparison lines up published fee schedules side by side.
Related
Browse all answers
More answers to common questions about financing, banking, and credit.
Part of the ClearValue family