When you need to send a payment securely, you may be wondering what the difference is between a cashiers check and a certified check. Both are types of bank checks, but there are some key differences. Here’s what you need to know.
What is Cashier’s Check?
Cashier’s checks, also known as bank drafts, are checks that are drawn on a bank’s own funds and signed by a Cashier. Cashier’s checks are one of the safest forms of payment because they are guaranteed by the bank. This means that the recipient of a cashiers check can be certain that the check will clear and they will receive the funds. Cashiers checks are often used for large purchases, such as buying a car or paying for a house. They can also be used to pay taxes or other bills. Cashiers checks are very difficult to counterfeit, so they are considered to be very secure. If you need to make a large payment, a cashiers check may be the best option.
What is a Certified Check?
Certified checks are checks that have been verified by a bank or other financial institution. This verification process typically involves the bank confirming that the check is genuine and that the account from which it is drawn has sufficient funds to cover the amount of the check. Once a check has been certified, it is guaranteed by the bank to be paid out. Certified checks are often used for large transactions, such as home purchases or car down payments, where the payee wants to be certain that the check will not bounce. Certified checks can also be used for smaller transactions, though this is less common. There is usually a fee associated with certifying a check, which is typically borne by the payer.
Difference between Cashiers Check and Certified Check
When you need to make a large purchase or pay an important bill, you may be asked to provide a cashiers check or certified check. While these two types of checks may look similar, there are some important differences between them.
- A cashiers check is a check that is issued by a bank and guaranteed by the banks funds. This means that the check will always clear, even if the account holder doesnt have enough money in their account to cover it. Cashiers checks are usually used for major purchases, such as a car or a house.
- A certified check is also issued by a bank, but it is not guaranteed by the banks funds. This means that if the account holder doesnt have enough money in their account to cover the check, it may bounce. Certified checks are usually used for smaller amounts, such as rent or utility bills.
- When you are asked to provide a cashiers check or certified check, be sure to ask which one is required. Providing the wrong type of check could delay your purchase or payment.
Conclusion
Cashiers checks and certified checks are both types of checks, but there is a big difference between the two. A cashiers check is a check that is drawn on the funds of the bank where it is written, while a certified check is a check that has been guaranteed by the issuing bank. This means that if you write a certified check and it bounces, the bank will cover the amount of the check. Cashiers checks are not as reliable because they are not backed by the issuing bank.
