What is a cashier's order in Singapore: A step-by-step guide
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PUBLISHED ONAugust 21, 2023 3:38 AM
What on earth is a cashier's order? Does it have anything to do with checking out at NTUC?
You may never have seen a cashier's order before, but chances are, you are going to need it someday when you are truly #adulting.
When it comes to large expenses such as the downpayment of a house or a car, a cashier's order provides a more secure way to transact. Likewise, when you receive large amounts of insurance payouts, housing related payments, or even proceeds from selling your car, you'll very likely get mailed a piece of paper which looks very much like a cheque… but is actually a cashier's order. Let's learn more about it.
1. What is a cashier's order?
Also known as a banker's cheque, a cashier's order is like a cheque-but issued by the bank themselves.
The chief benefit of using a cashier's order to receive money is the assurance that it will not bounce-unlike a cheque. This is because with a cashier's order, your payer parts with their money straightaway. The money then sits with the bank until you deposit the cashier's order-at which point the bank will transfer the money to you.
Cashier's orders are available in different currencies at different banks to meet your needs.
2. How does a cashier's order work?
Say you are due to receive a payment, and you request a cashier's order. Money is immediately drawn from the payer's account and put into the bank's own account. Yup, the cash you are owed is already out of the payer's hands, and is sitting safely with a bank.
The bank is fully responsible for the sum and will guarantee it to you-until you deposit the cashier's order. Then, the money is transferred from the bank to you.
3. Advantages of cashier's orders - why should I use one?
A cashier's order is a more trustworthy, secure, and reliable method to pay someone or receive money, rather than carrying around a fat stack of cash.
Another upside of using a cashier's order is that it ensures that the recipient will get their money. Since it's issued and guaranteed by the bank, it will not bounce back due to insufficient funds.
So for instance, if you are selling your car, you could use a cashier's order to ensure you won't get cheated of your money. Specify that you want payment to be made via a cashier's order as opposed to a cheque-this ensures you'll get your money, and you're protecting yourself.
4. Cashier's order vs cheque
Both a cashier's order and cheque are written documents that serve the purpose of transferring money.
The main difference lies in the fact that a cashier's order is guaranteed not to bounce, since the money has already been retrieved from the payer's account when it is issued.
On the other hand, regular cheques have the possibility of getting rejected if the payer doesn't have enough funds in their bank accounts.
For this reason, a cashier's order is commonly used for property, brokerage or other big-ticket item transactions to protect the recipient/seller's interest.
5. How can you get a cashier's order?
You can purchase a cashier's order at any bank branches. To purchase it over the counter, all you need is your identification card (NRIC).
The typical fee is S$5, but it may be waived if you're a wealth customer (i.e. DBS Treasures, OCBC Premier Banking, etc.). Here are links to the major banks' cashier's order instructions.
6. How do I bank in or deposit a cashier's order?
Can you deposit your cashier's order into the cheque box? Yes, you can just drop your cashier's order into the cheque box outside your neighbourhood bank outlet.
Wah, such a big sum of money leh, you sure I can just drop it in the box outside? What if someone takes my cashier's order?
Let's clear this up once and for all with a suaku story of mine: One time when I had to bank in a cashier's order, I insisted on taking a queue number at my neighbourhood market's DBS branch. I wanted to physically bank in my Cashier's Order. I queued for almost an hour (COVID times!).
Then, I went in to show the bank teller my cashier's order. She told me…to just drop it in the cheque box outside. So, the security guard escorted me out (again, COVID times) and watched me drop the cashier's order into the cheque box. I left feeling like a fool.
How long will it take to receive your money from a cashier's order?
When depositing a cashier's order, the time needed to receive your money is typically the same as that for cheques. Here's a rough idea based on the DBS cheque clearing timelines:
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This article was first published in MoneySmart.