Reading about cashier orders is the true mark of being an adult. We’ll try to make things easy.
The good news is that if you need a cashier order, it probably means you’re making a massive expense, such as buying your own home or getting your first car.
In this case, a cashier order is precisely what you need.
We’ll tell you why below. We’ll also discuss why you should get one, how to do it, plus other frequently asked questions.
Stay tuned below.
What Is A Cashier’s Order?
A cashier order works pretty much like a cheque, and banks issue it. That’s why many people in the industry also refer to cashier orders as bankers’ cheques. How does a cashier order work?
Here’s how a cashier order works:
1. You request one from your bank.
– Of course, you need to have an account with that bank first.
2. The bank withdraws money from your account and deposits it into their accounts.
3. Now the bank takes full responsibility for that money.
Pro tip: You can get a cashier order in different currencies according to your needs, so check the available options with your bank.
Why Should You Get A Cashier Order?
After knowing what a cashier order is and how it works, are you wondering when will you need it? When should you use a cashier order?
A cashier order is best for large expenses because:
– The bank guarantees it, so you know it’s a very secure way of paying someone.
– It’s better than dealing with cash because you can lose that cash, count it wrong, or pay higher fees when making bank transfers.
– You avoid cases of fraud and a following legal process. Your buyer’s cheque can bounce back if they don’t have enough money in their account and are just trying to trick you.
– It’s better to pay people with cashier orders instead of making transfers or giving them cheques to avoid delays or problems with your accounts.
– It’s safer to have a cashier order in case you misspell your buyer or seller’s information. That way, you’re saving a lot of time trying to retrieve the transferred funds and correcting the initial errors.
– You can get a cashier order quickly online, especially if you have Internet Banking. That means you’re saving a lot of time and hassle.
What Is The Difference Between A Cashier Order & A Cheque?
We already hinted at the main difference between a cashier order and a cheque above when we said that cheques could bounce back.
That’s the main advantage of cashier orders compared to cheques:
While both documents are written to transfer money for usually large purchases, a cashier order cannot bounce. The bank guarantees it because it has already gotten the needed funds from the one paying the cashier order.
Cheques can bounce in case the payer doesn’t have enough money in their account.
Basically:
– The buyer transfers the money before the bank issues the cashier order, but:
– Money is transferred from the buyer’s bank account after the seller tries to redeem the cheque.
Here’s what that means:
Anyone can write a cheque for $10,000 even if they don’t have that sum in their accounts. In this case, you’ll be a victim of fraud, and you’ll have to go through a lengthy process to get your money back.
Cashier Order Vs Demand Draft
A demand draft is different from a cashier order because you’ll be using it for overseas purchases. That means the demand draft will be in a foreign currency while your cashier order is in local SGD.
Another difference relates to charges, but obviously, each bank has its own conditions.
Usually, a demand draft purchased online has a commission of around 2% plus $5/draft. By comparison, you can purchase a cashier order for just $5, while other banks offer this option for free if you’re applying online.
FAQ – Some Questions You Might Have
Now that you know the basics of cashier orders, let’s see some of the most frequently asked questions:
How can I get a cashier’s order?
You can get a cashier order from any bank in Singapore, either online or over the counter.
What documents do I need for a cashier order?
The only document you’ll need is your ID card.
How much does a cashier order cost?
A cashier order in Singapore is usually $5. However:
– Some packages include free cashier orders, such as OCBC Premier or DBS Treasures.
– Other banks allow you to order cash orders without any charge if the order is issued to your name.
– A cashier order can cost $10 at certain banks in Singapore, such as HSBC.
When can I collect my money?
The time you can collect your money depends on the time the cashier order has been deposited. Here’s a rule of thumb:
| Time of deposit | When you can receive the money |
| Monday – Thursday before 3.30 pm | Next business day after 2 pm |
| Thursday after 3.30 pm – Friday before 3.30 pm | Monday after 2 pm |
| Friday after 3.30 pm – Sunday | Tuesday after 2 pm |
However, other banks may have different conditions. POSB, for example, allows you to collect the cashier order:
- On the same day from 4 to 5 pm, if you applied for the cashier order before noon
- The next business day, if you applied after 12 pm or on a Saturday, Sunday, and Public Holiday
How much money can I back with a cashier order?
The sum depends on the bank, but usually, the maximum cap is $10,000.
How do I get my cashier order after purchasing it?
Some banks in Singapore, like POSB, require you to get the cashier order in person because they need you to sign the documents. So, when you purchase the cashier order online, select the most convenient branch to get it.
However, banks like UOB can mail the cashier order to you or the recipient.
What is the validity period for a cashier order?
A cashier order is valid for six months.
Can I cancel a cashier order?
Yes, you can cancel a cashier order. Some banks have no charges for cancellation, while others ask for a $5 fee.
Can I place a “Stop Payment” on a cashier order?
Yes, if you’ve lost your cashier order or someone stole it, you can ask the bank to stop the payment, replace the order with a new one, or give you a refund. You’ll need to complete a Stop Payment form and get the payee’s notarised consent, plus you can expect a $15 charge.
Are There Alternatives To Getting The Money You Need?
A cashier order can come in extremely handy when you are making large purchases. You save the trouble of bringing cash around and it lowers the risk as well.
However, did you know that there are other methods of getting cash or getting a loan?
If you need a large some of money urgently, certain licensed moneylenders can help you! They are able to loan you up to $88,888 within a few hours! Some licensed moneylenders have this ability.
Of course, while it may sound daunting to borrow from licensed moneylenders, they are reliable and very much like a private bank. Please check against the registered list of licensed moneylenders in Singapore before borrowing though, just in case it is a scam!
To report scams, you can call the police hotline at 1800-255-0000 or submit via https://www.police.gov.sg/iwitness.