No, they are not the same, though they look similar and serve the same purpose

A cashier's check and a money order are both ways to send money that feel safer than a personal check — the funds are may provide because a bank or money services company has already taken the money from your account. But they come from different sources, cost different amounts, and have different limits on how much you can send. A cashier's check is issued by a bank and drawn on the bank's own account. A money order is issued by a post office, grocery store, or money services company and drawn on that company's account.

For most people, the choice comes down to how much money you need to send and where you can get to. If you need to send more than $1,000 or the recipient specifically asks for a cashier's check, go to your bank. If you need to send under $1,000 and want to avoid a bank trip, a money order from the post office or a grocery store works just as well.

Key Takeaways

  • A cashier's check is issued by a bank using the bank's own funds, while a money order is issued by the post office or a money services company using their funds.
  • Cashier's checks have no upper limit and cost between $5 and $15, while money orders typically cap out at $500 to $1,000 per order and cost $1 to $5.
  • Cashier's checks take one business day to clear, while money orders clear almost when ready because they are treated as cash.
  • Money orders are easier to obtain because you can buy them at grocery stores and convenience stores, while cashier's checks require a bank account and a trip to a bank branch.

Where each one comes from and who issues it

A cashier's check is created by a bank teller using money from your bank account. The bank writes the check on its own account, signs it with an authorized officer's signature, and guarantees payment. This is why a cashier's check is considered as good as cash — the recipient knows the bank itself is on the hook, not you personally.

A money order is issued by a third party: the U.S. Postal Service, Western Union, MoneyGram, or a grocery store like Walmart or Kroger. You pay the money services company the amount you want to send plus a small fee, and they issue a document that the recipient can cash or deposit. The money services company guarantees payment, not a bank.

Cost and spending limits

A cashier's check costs between $5 and $15 per check, depending on your bank. Some banks charge less for customers who maintain a minimum balance or have direct deposit. There is no upper limit on the amount you can put on a single cashier's check — you can send $10,000 or $100,000 if you have the funds.

A money order typically costs $1 to $5 per order. The U.S. Postal Service charges around $1.45 for a money order up to $500 and around $2.45 for one from $500.01 to $1,000. Western Union and MoneyGram charge more — usually $3 to $5 — but their limits vary. Most money orders cap out at $500 or $1,000 per order. If you need to send more than that, you have to buy multiple money orders, which means paying multiple fees.

How fast each one clears

A cashier's check typically clears within one business day. The recipient deposits it, and the funds appear in their account the next day. Some banks hold cashier's checks for a few days if the deposit is large or if the recipient's account is new, but this is less common than it used to be.

A money order clears almost when ready because it is treated as a cash equivalent. The recipient can cash it at a bank, post office, or money services location and walk away with cash, or deposit it and have the funds available the same day or next business day. There is no clearing period the way there is with a personal check.

When to use a cashier's check

Use a cashier's check when you need to send a large amount of money — more than $1,000 — or when the recipient specifically asks for one. Landlords, car dealers, and title companies often request cashier's checks because they are familiar with them and trust the bank's may provide. You need a bank account to get one, and you have to go to a bank branch or call ahead to order one.

Cashier's checks are also the better choice if you want a paper trail. The bank keeps a record of the check number, amount, and recipient, which can help if there is a dispute later. You can also stop payment on a cashier's check if it is lost or stolen, though the process takes time and may involve a fee.

When to use a money order

Use a money order when you need to send a smaller amount — under $1,000 — and you do not have a bank account or do not want to go to a bank. Money orders are available at thousands of locations: post offices, Walmart, CVS, Walgreens, grocery stores, and check-cashing shops. You do not need a bank account to buy one. You just walk in, tell the clerk the amount, pay the fee, and walk out with the money order in hand.

Money orders are also useful if you want to send money to someone without giving them your personal check number or bank account information. The recipient sees only the money order, not your banking details. If you are paying a bill to an unfamiliar company or sending money to someone you do not fully trust, a money order keeps your financial information private.

What happens if a cashier's check or money order is lost or stolen

If a cashier's check is lost or stolen, contact your bank right away. The bank can put a stop payment on it, but you will usually have to pay a fee — typically $15 to $30 — and sign an affidavit swearing that the check was lost or stolen. The bank will then issue you a replacement check. The whole process can take several days to a few weeks.

If a money order is lost or stolen, the process depends on who issued it. The U.S. Postal Service requires you to file a claim with proof of purchase. Western Union and MoneyGram have similar processes. You will need the receipt or the money order number, and you may have to wait weeks for a replacement or refund. This is why it is important to keep your receipt when you buy a money order.

Frequently Asked Questions

Can I get a cashier's check without going to the bank in person?

Some banks allow you to order a cashier's check online or by phone, and they will mail it to you or hold it for pickup at a branch. Call your bank to ask. If you need the check right away, you will have to visit a branch in person.

Can I buy a money order with a credit card?

Most places that sell money orders do not accept credit cards — they want cash or a debit card. The U.S. Postal Service, Walmart, and most grocery stores accept debit cards and cash. Check with the specific location before you go.

Which one should I use to pay rent?

Ask your landlord. Many landlords prefer cashier's checks because they are familiar with them and the amount is may provide. Some will accept money orders. A few may ask for a specific payment method in your lease. If your landlord has no preference and you do not have a bank account, a money order works fine.

Can I write a money order to myself?

Yes, you can write a money order to yourself and deposit it in your bank account. This is sometimes done to move money between locations or to convert cash into a form that is easier to deposit. The process works the same as depositing one written to you by someone else.

What if the amount on the cashier's check or money order is wrong?

If the amount is wrong, you cannot change it — cashier's checks and money orders cannot be altered. You will have to get a new one issued. Contact the bank or money services company that issued it and explain the error. They will usually issue a replacement at no extra charge if it was their mistake.