 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Best Practices When Giving or Receiving a Cashier's Check\n---------------------------------------------------------\nIn general, cashier's checks are among the safest payment methods available. But even with the security features they include, they're not entirely immune to fraud. Here are some best practices to keep in mind.\n### When Receiving\nIf you don't know the person who gave you the check, it's best to avoid using the funds until after the check clears with your bank. This typically only takes a day, but it can take longer depending on the bank and the amount of the check. Avoid buyers who want to give you a cashier's check for more than the purchase price or who offer you checks with misspellings or no security features. These are both signs of common cashier's check scams.\nIf you're receiving the check in the sale of a car or something else that's valuable, consider making the sale contingent upon the check clearing instead of when the buyer hands it to you. If the buyer refuses, you can always look for someone else.\n### When Purchasing\nIf you purchase a cashier's check and lose it before giving it to the recipient, the bank will require you to purchase an indemnity bond before it issues a new one. The bond ensures that you will be liable for the original check instead of the bank if it's found and used for payment. You can also purchase an indemnity bond from select insurance companies, but it's not easy to get one, so safeguard the cashier's check like you would cash. END