The Bank of America is an American corporation that offers financial and investment banking services on a multinational scale. It has its headquarters in North Carolina, with several branches all over the United States and in Hong Kong, London, and Toronto. The money order, on the other hand, is a payment request for a particular amount of money, which is mostly prepaid.
The question is: does Bank of America do money order?
Being a reputable financial institution in the United States can be a great deal, as the Bank of America covers almost all parts of the United States with several employees of over two hundred thousand. A financial institution like this, must-have diverse ways to carry out a financial deposit, which is why we are looking at the question, does Bank of America do money order? The money order is one of the ways you can carry out financial transactions in the Bank of America. They use the money order for deposit and withdrawal of cash.
Continue reading to get more useful information regarding this topic!
How Money Order Work?
The money order is similar to the check. It is also a small piece of paper that allows you to receive a particular amount of money. The money order is available widely and also cheap.
It provides a secure means of carrying out a financial transaction, rather than using cash. It is also a great way to carry out the transaction in cases where you may not have a personal checking account. One difference between the money order and a check is that money order has a limit; once you exceed the required amount, you will need to get another money order.
Cost Of The Money Order
The price for a money order is low as most times. It depends on where you bought the money order. However, one can say that it is relatively not expensive. Most times, at Wal-Mart, it is cheap as they charge as little as $0.86 on their money order fees, they are one of the most inexpensive options you will have when it comes to a money order.
On the other hand, the United States Post Office takes a little bit more as they can charge you a fee of up to $1.25 for money orders of $500. Also, for money orders up to $100, they can charge you up to $1.75. However, the Western Union does not have a fixed amount of charge they take per money order but its most likely you will pay $1 for money orders of $1000, it mostly depends on the amount of money you are sending across, if it’s high then you may be charged a little bit higher.
Using The Money Order
When you obtain a money order, you must understand that you need to pay the money upfront, that is the full money plus any little charge that will come as a result of you using the money order. You must fill your full name to the money order, including your contact address. You will also need to fill the name of the receiver in the money order plus the contact address of that receiver.
There is a line on the money order referred to as a memo line, where you will describe what the money order is for, and you sign the money order as you would sign in your cheque. To understand how a money order works, here is a real-life example to explain how to use the money order. Assuming, you owe your landlord $900 rent for two months, and you do not use a checking account.
In a bid to pay the rent, you will go to a store that sells money orders and buy a money order worth $900 to cover the rent. Once you give that money order to your landlord, he goes to the bank and deposits that money into his account as if he had the cash or a cheque. Thus, a money order is ideal for an individual who does not like to carry out transactions with checks or cash.
Getting And Cashing In Money Orders
You can get the money order from different places. Some of these places are places we visit almost every day. One of the prominent places to get a money order is in the bank, as various banks in the United States sell and buys money orders.
Other places can be Wal-Mart, Western Union, Post Offices, and stores, etc. Whenever you receive a money order, you are sure to cash it at any of these places.
Disadvantages Of Money Order
As we all know, there must be a downside to everything, no matter how good it may present itself. The same applies when you use a money order. The only thing is that the advantages of using money order greatly outweigh the disadvantages. Below are some of the demerits of using the money order so you can weigh your options.
Extra Charges:
The charge for the money order is relatively cheap and may not bother you at all. However, in a situation where you do not have a checking account, it will make you always use the money order. Once you start using it consistently, your charges will increase, and this time, it might interpret it to be too much money leaving you at once.
The target for scammers:
The money order has been the target for a lot of scammers. It is the significant risk you stand to face when it comes to a money order. It is because a scammer can intercept an order and change the receiver’s information to his or her information so that they can cash or transfer the money to their accounts.
There was a recorded case where a scammer went to one of the stores that accept money orders. He gave a money order that was more than the amount required of him. He also asked for the change due to him. In the circumstance, once the receiver goes to the bank, it may as well turn out to be a fake order, which may put the receiver in some serious trouble.
Although the money order is relatively cheap, and it is widely available in places we visit daily, it is good we also know the alternatives to the money order. Thus, where you are not comfortable with the money order, there are wire transfers, cashier’s checks, personal checks, and prepaid debit card.
The Bank Of America
Coming into existence in 1904, the Bank of America first started as an institution that offered loans to immigrants. From this point, it has grown drastically over the years. Till now, Bank America is one of the largest Banks in the United States. The Bank of America generates about 90% of its revenue from the local market.
One of their primary goals is to lead when it comes to Banking in the domestic market. It seeks to achieve this by gaining more ground in the following divisions.
Consumer Banking:
Consumer banking is a banking process that provides loans, financial services to consumers, small businesses, such as credit cards, and mortgages. Consumer banking majorly focuses its attention on the consumers and interacts with the consumers daily, to help with any financial information. Now, research has shown that the consumer banking division carried about 38% of the bank’s total revenue in 2016.
Global Banking:
With global banking, it provides service to the global market in the view to lend services and products to businesses and also provides investment banking too. In global banking, you will come across global investment banking, global cooperate banking, business banking, and global commercial banking. The global banking division had about 22% of the bank’s revenue in 2016.
Global Market:
In this division, they manage and offer services to individuals in the institution. They also cover financial security when it comes to trading. They also have the responsibility of providing services such as liquidity providers and also responsible to delivers risk assessment, risk management with the help of derivatives. The division held up to 19% of the bank’s revenue in 2016.
For those who like the idea of banking with a big bank, then the Bank of America is the right bank for you. It also provides quality security plus other varieties of excellent features that make the bank top-notch. Some of them include savings account and checking accounts, ravel credit cards, points, and rewards.
Conclusion
At this point, we expect that you understand the meaning and use of the money order in the financial sector, and the role it plays to improve service delivery and create value for the consumer. It is essential you also know that as much as there is the use of money order in the Bank of America, you should know that there are limits to the amount of cash on the money order, and there is a fee or a charge tagged to every money order.
Although it is relatively cheap, using it frequently may pile up a lot of bills to cover for the charges. Thus, the answer to the question, does Bank of America do money order in the affirmative.
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