This is a question I meant to ask a long time ago but a recent conversation just brought it back to me so I thought I’d ask.
My wife and I were buying a house and the downpayment needed to be in. It was demanded much quicker than we had expected and we weren’t going to be able to get the money out of our investments quickly enough to pay for it. My brother agreed to loan us the money till we got our money out to repay him.
My brother sent me a cashier’s check for the required amount and I hightailed it to the bank to deposit it. Mind you I was under a time crunch as I’d be writing a check for the downpayment the following day. I went to my bank and deposited it when they told me there’d be a 3-7 day waiting period for the check to clear.
WTF is up with that??? I thought a cashier’s check was as good as cash. Essentially the person drawing the cashier’s check has the money withdrawn from their account immediately. The bank is now guaranteeing that the cash amount on the check actually exists and WILL be honored. Why would my bank treat a cashier’s check this way? My brother could have saved himself the trouble and the cost and just written me a regular old check on the basis of this.
Am I missing something?
[sub]FTR I repaid my brother with interest two weeks later.[/sub]