What is the difference between strikethrough, certified or cashier's check?  (2024)

FAQs

What's the difference between a certified and cashier's 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.

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.

When a bank issues a certified check, it verifies the payer's signature and ensures that the amount of the check is in the account and set aside for that check to clear. The bank adds a stamp, signature or other unique marking to show that a check is certified.

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.

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.

A certified check typically costs more than a cashier's check. On average, a financial institution charges from $10 to $15 for a cashier's check but $15 to $20 for a certified check. For one of its own customers, a financial institution might waive the fee for a cashier's check.

You may pay with cash or, if you are a customer of the bank, the funds will be withdrawn immediately from your account. The bank will then print the check to the person or business you have indicated in the amount you requested. It only takes a few minutes, and you can use the check right away.

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.

Aren't cashier's checks supposed to be honored immediately? 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.

Call or visit the branch of the financial institution on which the check is drawn on. The financial institution should be able to help you determine whether or not the check issued is genuine. Don't trust the phone number for the financial institution listed on the check, it might be fraudulent.

What does a real cashier check look like? ›

A cashier's check looks and works like a typical customer check, except it's written by a bank or credit union for withdrawal from the institution's account, instead of the customer's personal funds. The financial institution guarantees the check.

Although a certified check can help protect against fraud and bounced checks, if you're accepting the payment, know that scammers can create fake certified checks that look authentic.

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.

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.

A cashier's check can be considered safer than a personal check. That's because it's paid up front and can't bounce due to lack of funds in the corresponding account. Plus, only the designated payee can cash the cashier's check. And cashier's checks don't show any of your personal account information.

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.

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.

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.

While rare, a certified check could still bounce if the check writer's account somehow falls short. This won't occur with a cashier's check since the bank has already written it against its account. This makes it a guaranteed check.