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Cashier’s checks and certified checks are both popular methods of payment for large financial transactions. While they both offer greater security than a regular check, there are differences between the two.
A cashier’s check is backed by the bank’s or credit union’s funds, whereas a certified check is drawn from the buyer’s personal account. To help you understand the difference between the two, and to decide which one is right for your financial needs, let’s take a look at what each type of check is and why one might be a better choice than the other.
What is a cashier’s check?
A cashier’s check, also known as an “official bank check,” is a check issued by a bank or credit union, usually on behalf of its customer who pays the institution the face value of the check. Such a check is typically used for larger transactions. To obtain a cashier’s check, you provide the bank with the desired amount of money, and it issues a check using its own funds.
A cashier’s check provides peace of mind to the payee because it’s backed by the bank’s funds. It’s also beneficial when the check buyer wants to keep their bank account information private. A certified check, however, requires the individual to provide their personal information and account number on the check.
Cashier’s checks are more secure than regular personal checks because they’re guaranteed by the bank. If a cashier’s check bounces, or a loss of the check occurs, the financial institution generally is required by law to reimburse the recipient of the payment.
Fees for cashing a cashier’s check typically range from $5 to $15 for transactions exceeding $1,000. The fee can vary depending on the bank, with larger, established banks often charging a minimum fee of $10 (e.g. Wells Fargo charges $10 and Bank of America charges $15).
What is a certified check?
Like a personal check, a certified check functions by withdrawing funds from the accountholder’s checking account. However, a certified check undergoes a verification process by the bank to ensure that there are sufficient funds in the checking account to cover the amount stated on the check. The recipient of the funds can be certain that the bank has authenticated the check, the signature and the availability of funds. This process protects the recipient from receiving a bounced check.
The money for a certified check is directly debited from the issuer’s personal checking account, and their name and account number are stated on the check. A representative from the bank also signs and stamps the check, which often includes the terms “certified” or “accepted” printed on it.
The fee for a certified check can be higher than for a cashier’s check, usually around $15 to $20.
Differences between a cashier’s check and a certified check
A cashier’s check and a certified check can be similar in appearance, but they differ in where the money is withdrawn from. A cashier’s check uses the issuing bank’s funds while a certified check draws from the individual’s personal account.
The bank assumes responsibility for the amount of a cashier’s check, giving the payee greater confidence. Cashier’s checks also offer enhanced safety by not disclosing the payer’s personal bank account details.
Certified checks are obtained in person at a bank or credit union, which means customers of online-only banks may not be able to get one. The bank prints all the necessary information on a cashier’s check, eliminating the need for the customer to fill it out, which can be convenient.
While certified checks are useful for guaranteeing the availability of funds, the privacy of your personal bank account information is more secure with a cashier’s check.
| Cashier’s check | Certified check |
|---|
| Cost per item | $5 to $15 | $15 to $20 |
| Availability | Can be purchased at a bank or credit union, online or in person | Can be purchased at a bank or credit union, but filled out in person |
| Source of funds | The bank or credit union | The payer |
| Safety | No risk of bouncing, plus payer’s financial account information is kept private | The financial institution verifies check to ensure its validity and that the payer has sufficient funds |
| Best for | Those who need a secure payment method guaranteed by the financial institution itself, and those with an online-only account | Those who want extra assurance that there are sufficient funds in the personal account |
Bottom line
Cashier’s checks and certified checks are both secure ways to pay for larger transactions, but with a cashier’s check, the bank assumes responsibility for the check amount and the payer’s personal information remains private.
Cashier’s checks are more secure and offer greater convenience for customers of online-only banks while certified checks are more convenient for customers of traditional banks. Ultimately, the choice between a cashier’s check and a certified check should depend on the payer’s particular needs and preferences.
FAQs
Differences between a cashier's check and a certified check
Which is better a cashier's check or certified check? ›
Cashier's checks are signed by the financial institution rather than the customer, and the bank's account is used for the check. That often makes these checks generally considered "safer." By contrast, certified checks are signed by the account holder, and the signature is then certified by the bank teller.
What is the downside of cashier's check? ›
Downsides of Cashier's Checks
Risk of fraud is also high with cashier's checks, as counterfeit cashier's checks can be created by scammers. Last, cashier's checks are non-refundable. This means you may not be able to get a refund for the funds used to purchase them.
What information is needed for a certified check? ›
To get started, you'll need to provide the check amount, name of the recipient and any note you want to include on the check. You'll then have to verify your identity and prove to the bank or credit union employee that you have the funds available in your account. Banks may require a photo I.D. for verification.
Do certified checks clear immediately? ›
Federal regulations require banks to make funds deposited in an account by cashier's, certified, or teller's checks available for withdrawal not later than the business day after the banking day on which the deposit takes place, the same as for cash deposits, but only if certain conditions are met.
Is a cashier's check 100% safe? ›
Cashier's checks are typically deemed a safe way to make a large payment on a purchase. The difference from a regular check is that the bank guarantees its payment, not the purchaser.
What is the maximum amount for a cashier's check? ›
Although the policy may change from bank to bank, generally there's no upper limit for a cashier's check. The payee typically has quicker access to a larger amount of the funds with a cashier's check.
Why do people not like cashiers checks? ›
Sometimes, however, a cashier's check is not genuine, and, if you unknowingly accept a fraudulent cashier's check in exchange for goods or services, you will likely be the one who suffers the financial loss.
Why would someone want a cashier's check instead of cash? ›
They're almost equivalent to cash, but the risk of theft is lower because only the payee can deposit a cashier's check. They're guaranteed. Unless a cashier's check is fraudulent, there's almost no risk that it will be declined, or "bounce." They're fast.
What voids a cashier's check? ›
Theft or fraud are examples of reasons for canceling a cashier's check.
Benefits of Using a Certified Check
With a certified check, the recipient knows that the bank has verified the check, signature, and availability of funds. It's a source of guaranteed funds. The process of certifying a check verifies: The person writing the check has the authority to write checks on that account.
Who signs the back of a certified check? ›
A certified check is drawn on a personal bank account and signed by the payer. It's a form of payment verified by a bank as genuine, with adequate funds from the bank account set aside to guarantee the transaction.
Do certified checks have your name on them? ›
When you write a certified check, the money is drawn directly against your personal checking account, and your name and account number appear on the check. 2 In addition to your signature, a bank representative will also sign the check, and it will have the words "certified" or "accepted" printed somewhere on it.
What is the difference between a certified or cashier's check? ›
Differences between a cashier's check and a certified check
While both offer security, a cashier's check involves the bank's direct liability, whereas a certified check relies on the payer's available funds.
How do you know when a certified check has been cashed? ›
If you need to verify whether a cashier's check has been cashed, you can contact the bank that issued it. If it hasn't been cashed yet, but you think it's been lost or stolen, you may be able to cancel the check or put a stop payment on it through the bank.
Will my bank put a hold on a certified check? ›
However, a certified check guarantees that the bank has verified that you have the money to pay the check. Most banks put a hold on the funds required to cover a certified check as extra insurance.
What is the advantage of using a cashier's check? ›
Cashier's checks are a safe, reliable way to make payments of large amounts and in transactions where cash or personal checks are not accepted. When a cashier's check is a legitimate check issued by a bank or credit union, it's drawn against the financial institution's funds, it's not going to bounce.
How much does a certified check cost? ›
While personal checks typically cost a few cents each, you can expect to pay $15 to $20 for a certified check. Not only are certified checks more expensive, but it is also difficult to find a bank that offers them. Many banks sell cashier's checks and money orders, but not certified checks.
Is a certified check guaranteed? ›
With a certified check, the recipient knows that the bank has verified the check, signature, and availability of funds. It's a source of guaranteed funds. The process of certifying a check verifies: The person writing the check has the authority to write checks on that account.
How long will a bank hold a cashier's check? ›
Generally, if you make a deposit in person to a bank employee, then the bank must make the funds available by the next business day after the banking day on which the cashier's check is deposited.
