Cashier’s check vs. certified check: What’s the difference?
Quick insights
- Cashier’s checks are generally issued by banks, offering assurance that funds are available for payment.
- Certified checks are personal checks for which your bank verifies that you have enough funds available.
- Both may provide extra assurance for large transactions, but they can differ in the ways they’re processed and issued.
When making large payments from your checking account, you may find that both cashier's checks and certified checks are viable options.
These two types of checks provide assurance to the recipient that the funds are available. However, they are distinct in their processes, degrees of assurance and uses. Understanding the difference between the two may help you choose the right type of check for your situation.
What is a cashier’s check?
A cashier’s check is a type of check issued by a bank on behalf of a customer. When you request a cashier's check, the bank withdraws the specified amount from your account and then issues the check using the bank's own account details. Because the funds have been issued by the bank, the recipient of the check may be assured that the payment is legitimate.
Pros of cashier’s checks:
- Available funds: Since the bank issues the check and covers the amount, the funds may be more readily available for the recipient, making it a reliable form of payment.
- Widely accepted: Cashier’s checks may be used in a wide range of transactions.
- No stop payments when receiving a cashier’s check: Since the bank’s account details are used, a cashier’s check cannot be canceled like a personal check.
Cons of cashier’s checks:
- Fees: Banks may charge a fee for issuing a cashier’s check.
- Less flexibility: Some banks might have restrictions on who can request a cashier’s check.
What is a certified check?
A certified check is a personal check that is verified by your bank as having sufficient funds to cover the amount written on the check.
Pros of certified checks:
- Security: Certified checks may be considered a more secure form of payment than regular, non-certified personal checks since the bank verifies the funds are available.
- Lower cost: Certified checks tend to have lower fees than cashier’s checks.
Cons of certified checks:
- Funds may be frozen: Once a check is certified, the amount is usually set aside in your account, which may pose a challenge if there aren’t enough available funds for your other everyday purchases and bills.
- Bank visits: It’s your personal check, so it may require you to visit the bank for certification. This may be more of a hassle than a cashier’s check, which you may be able to get online through your bank’s online portal or mobile app.
Key differences between cashier’s checks and certified checks
Cashier’s checks are issued by the bank using its own account details, meaning the bank verifies that payment will reach the recipient. In contrast, certified checks are generally personal checks that the bank verifies to ensure the funds are available in your account.
But with a certified check, the funds aren’t withdrawn from your account until the recipient cashes the check. With a cashier’s check, the bank will withdraw the funds from your account at the time of the request.
Cashier’s checks tend to be used for larger transactions, while certified checks may be best for smaller payments.
In summary
Choosing between a cashier’s check and a certified check may depend on your situation. If you’re looking to make a larger payment or if the recipient requires a higher level of assurance, a cashier’s check may be a better choice. On the other hand, you may want a more affordable option while ensuring the check has the necessary funds. In this case, a certified check could be a more suitable option for you.
Both cashier’s and certified checks generally offer a high level of security compared to regular personal checks. By understanding the differences, you can select the appropriate option based on your needs and the requirements of your transaction.
