Bank Check

• A bank check is simply a check that was issued by a bank, in contrast to a personal check, which is issued by an individual. There are two types of checks which may be issued by a bank: cashier's checks and teller's checks. Any type of bank check is typically regarded as being safer than a personal check, but this is not automatically the case.
  
  

Cashier's Check

• A cashier's check is the most common type of bank check. The Uniform Commercial Code, or UCC, says that what specifically makes a check a cashier's check is that the same bank is both the drawer, the entity ordering payment, and the drawee, the entity ordered to make payment. A cashier's check is a check the bank has verified and is guaranteeing the check will be paid when presented.
  
  

Teller's Check

• A teller's check is similar to a cashier's check, except that the drawee is not the issuing bank. The UCC defines a teller's check as one issued by one bank, but either drawn on or payable to or through another bank. Since a teller's check is not drawn on the issuing bank, and therefore the bank cannot necessarily verify that there are funds available to pay the check, it may or may not be considered safer than a personal check.
  
  

Warnings

• Because cashier's checks are considered safe, they are a popular target for fraud. The Federal Trade Commission has provided resources to protect consumers from check fraud. (See Resources.)