Did you know that despite Singapore’s reputation as one of the safest places in the world, you’re not immune to the cunning tactics of scammers looking for easy money?
It’s a sobering reminder that vigilance can prevent loss of funds in big transactions—and a cashier’s order is here to save the day.
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 transfer money.
On the flip side, if you receive a hefty insurance payout, a sweet payment from selling your home, or a tidy sum from ditching your car, you might find yourself holding something that looks a lot like a cheque—but it’s actually a cashier’s order.
But what’s that, you ask? Let’s find out more.
Cashier’s order: Everything you need to know
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- What is a cashier’s order?
- How does a cashier’s order work?
- What are the advantages of a cashier’s order—should I use one?
- What’s the difference between a cashier’s order and a cheque?
- How can you get a cashier’s order?
- How do you bank in or deposit a cashier’s order?
- What is the maximum amount of money that can be transferred through a cashier’s order?
- How do you protect yourself from fraud when using cashier’s order?
- Is it safe to leave a cashier’s order in a cheque box outside of a bank’s branch?
- How long will it take to receive your money from a cashier’s order?
What is a cashier’s order?
Nope. A cashier’s order has nothing to do with cashiers at supermarkets and shops.
A cashier’s order or banker’s cheque is a payment instrument issued by a bank. It guarantees that the funds are available and will be released once you deposit them into your own bank account. The defining characteristic of a cashier’s order is that the bank pays the amount specified on the order because the payer has already parted with their money.
This contrasts with a personal cheque, where the payment is drawn from the purchaser’s bank account and can bounce. The chief benefit of using a cashier’s order is that it avoids this scenario.
Cashier’s orders are available in different currencies at various banks. It gives you more flexibility because you can choose the currency that matches your transaction requirements. Plus, you avoid extra fees in currency exchange.
How does a cashier’s order work?
Imagine you’re waiting for someone to pay you. Instead of giving you cash directly, they get a cashier’s check from the bank.
That means the bank instantly takes the money from the payer’s account and holds onto it for you.
It’s like the bank is promising, “We’ve got your money safe and sound!”
When the payer gets this special check, called a cashier’s check, and gives it to you, the bank says, “We promise to pay this amount to whoever has it.” It’s as good as cash because the bank, not the payer, is now holding the money and making sure you get paid.
When you’re ready, you take this check to your bank, give it to them, and that’s when the bank finally puts the money into your account. This way, you can be sure the payment is secure because the bank is looking after it until you deposit the cashier’s check.
Remember, once issued, cancelling a cashier’s order is cumbersome. If lost or stolen, the payer may need to go through a stop-payment process, which can be more complex and involve fees, depending on the bank’s requirements and process.
What are the advantages of a cashier’s order—should I use one?
When making big purchases, you want assurance—both as a buyer and seller. Here are the advantages when using a cashier’s order:
- Security. Think of a cashier’s order as a secure way to pay someone without using cash or a personal cheque. When you use a cashier’s order, the bank immediately takes the money from your account and keeps it safe until the person you’re paying is ready to collect it. For instance, if you are selling your car, you could use a cashier’s order to ensure you won’t get cheated on with your money.
- Reliability. A cashier’s order is more reliable than other forms of payment because it is backed by the issuing bank’s funds, not the individual’s account. The funds are guaranteed by the bank, so collecting payments is easy. Just make sure you have your NRIC/passport to show.
- Convenience. While cashier’s orders require a visit to the bank, they are relatively easy to obtain if you have an account with the institution. Some banks, like DBS Bank, Maybank, and POSB, also let you purchase a cashier’s order online if you have digital login credentials and savings accounts.
- Speed. Compared to personal cheques, which can take several days to clear, cashier’s orders often clear upfront. Additionally, now that we’re talking about speed, purchasing a cashier’s order in the branch, like at DBS Bank, will take about 30 minutes.
What’s the difference between a cashier’s order and a cheque?
Cashier’s orders ensure your money moves without a hitch, unlike regular cheques, which may bounce if funds are short.
Here’s a table summing up the differences:
| Aspect | Cashier’s Order | Personal Cheque |
| Use | Preferred for large transactions like down payments on a home, purchasing vehicles, real estate transactions, and insurance payouts. | Commonly used for everyday or routine payments like bills and rent where a physical paper trail is needed for recordkeeping. |
| Security | It is highly secured and guaranteed by immediate cashout. Due to stringent bank signatures and watermarks, it is hard to counterfeit. | It has lower security compared to cashier’s checks. It is subject to fraud and can bounce if insufficient funds are in the account. |
| Fees | Ranges from $3 to $15, depending on which bank you purchase it | Usually provided for free when you open a chequing account, and re-ordering may incur minimal fees. |
| Processing | Time needed to receive the money is almost the same as cheques. | Processing can take several days. Once the cheque is cleared, the bank only debits (or credits) the amount from the customer’s account. |
When you need to pay for something big, like a car or a down payment on your house, a cashier’s order is the way to go—the money is there, because the bank already holds the funds. On the other hand, a personal cheque is like your everyday sidekick for regular payments, like paying rent or bills.
How to get a cashier’s order
You can purchase a cashier’s order at any bank branch. 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 priority banking customer (i.e. DBS Treasures, OCBC Premier Banking, etc.).
Here are links to the major banks’ cashier’s order instructions.
Here’s a table with the price of a cashier’s order from different banks:
| Price (Own name) | Price (3rd Party) | |
| DBS/POSB | S$3 (online) S$15 (branch) |
S$5 |
| OCBC | Free | S$5 |
| UOB | S$3 (online) S$5 (branch) |
— |
| Maybank | S$10 | S$10 |
How do you bank in or deposit a cashier’s order?
To bank in or deposit a cashier’s order in Singapore, follow these steps.
- Prepare the cashier’s order. Fill out the cashier’s order form correctly with your name as the payee. Some banks may require you to endorse the back of the cashier’s order, so check if it’s necessary.
- Fill out a deposit slip. Get a deposit slip from your bank, which is usually available at branches. Complete the deposit slip with the required information, such as your account number, the date, and the amount of the cashier’s order.
- Choose your deposit method. Either visit a branch near you or use the quick cheque deposit box.
- Wait for the funds to clear. After depositing the cashier’s order, the funds will typically be available in your account the next business day after 2pm if the deposit is made before the cut-off time (usually around 3.30pm).
What is the maximum amount of money that can be transferred through a cashier’s order?
The maximum amount of money that can be transferred through a cashier’s order in Singapore varies by bank, but for DBS the minimum is S$5 to S$100,000 per cashier’s order.
If the amount you need to transfer exceeds this limit, you can purchase additional cashier’s orders to cover the total amount needed, with each cashier’s order fee factored in as well.
How do you protect yourself from fraud when using cashier’s order?
Scammers are always on the lookout for opportunities to get easy money.
Although a cashier’s order is a safe and secure way to make payments and transfer funds, you need to be wary as well on how to detect fraud in your transactions.
1. Verify the legitimacy of the cashier’s order
Before accepting a cashier’s order, especially in a transaction involving significant amounts, verify its authenticity with the issuing bank. Call the issuing bank and ask if they issued the cashier’s order and specify the amount. Check the bank’s routing number if it matches the cashier’s order.
2. Be wary of overpayment scams
Be cautious if you receive a cashier’s order for an amount greater than the agreed price. Scammers may ask you to deposit the check and return the excess amount.
Always confirm the agreed-upon price before accepting the check and insist on a new cheque for the correct amount if necessary.
3. Purchase directly from reputable banks
When purchasing a cashier’s order, choose reputable and financially stable banks. This minimises the risk of issues arising from bank closures or bankruptcy.
4. Keep detailed transaction records
Maintain comprehensive records of the transaction, including the date, amount, and any communication with the buyer or seller. This documentation can be used in the event of a dispute or fraudulent activity investigation.
5. Report suspicious activity
If you suspect that a cashier’s order might be used for fraudulent purposes, report it to the authorities immediately. In Singapore, you can contact the police hotline at 1800-255-0000 or submit information online at https://www.police.gov.sg/I-Witness.
Is it safe to leave a cashier’s order in a cheque box outside of bank’s branch?
While it’s safe to deposit cashier’s orders in a quick cheque deposit for very large sums, you might consider depositing directly at the counter during banking hours for peace of mind. This way, you can obtain a deposit slip as proof of the transaction immediately.
It’s worth noting that while the process is designed to be secure, there is a very slim chance of mishandling or misplacement. Banks have procedures to address such rare instances, ensuring that your funds are protected.
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:
| Cashier’s order deposited on | Receive money on |
| Monday – Thursday before 3.30pm | Next business day after 2pm |
| Thursday after 3.30pm | Monday after 2pm |
| Friday before 3.30pm | Monday after 2pm |
| Friday after 3.30pm | Tuesday after 2pm |
| Saturday | Tuesday after 2pm |
| Sunday | Tuesday after 2pm |
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