While they both act as viable substitutes for cash, cashier’s checks and money orders as different as apples and oranges. Let’s talk about the difference between them, because you never know when you’ll need to purchase one (or the other).
Cashier’s checks are funds that a bank guarantees. They are a liquid alternative to cash, and you can obtain them with a teller at the financial institution of your choice. Cashier’s checks are guaranteed funds because the bank is responsible for paying the amount, not the purchaser. When issuing one, banks typically charge a service fee for around $10. You can order a cashier’s check for any dollar amount, so long as you have sufficient funds available in your account to cover the sum plus the service fee.
Money orders are cheaper alternatives to cashier’s checks, costing as little as $1.25. The best place to get a money order is at your local Post Office, provided that they offer money order services (some Post Office locations don’t). While they cost less to purchase than cashier’s checks, domestic moneys orders can’t exceed $1,000 each, and international money orders cap out at $700.
If you more information on obtaining money orders with the Postal Service, pop over to USPS’ website.