When you’re making a large purchase or exchanging a significant amount of money, a certified check is often the preferred payment method. A certified check is a type of personal check that a bank guarantees by confirming the account has enough money and setting those funds aside. This makes certified checks safer than personal checks and more practical than carrying large sums of cash.
Quick Take
- Certified checks are personal checks backed by a bank, which verifies and reserves the funds.
- They’re commonly used for large purchases like real estate, vehicles and security deposits.
- Funds are set aside from your account and can’t be used elsewhere.
- Fees may apply, and not all banks issue certified checks.
- They offer more security than personal checks, but still require care to avoid scams.
How a Certified Check Works
A certified check is drawn from your personal checking account, but the bank guarantees it by setting aside the funds. Before issuing the check, the bank verifies that the account has enough money and places a hold on those funds so they can’t be spent elsewhere.
Once certified, the check is marked accordingly and guaranteed by the bank or credit union. This gives recipients confidence that the check will clear and won’t bounce. Certified checks usually don’t expire.
How To Get a Certified Check
You can purchase a certified check from your bank or credit union, though not all institutions offer them. If your bank does, here’s what to expect:
- Ensure you have enough funds: Make sure you have enough money in your checking account to cover the amount of the check plus funds to pay any additional fees.
- Gather the required information: You’ll typically need your account number, the recipient’s name, an ID and funds to cover the check.
- Write the check: The bank may require you to write a personal check in front of a teller before certifying it.
- Have the check certified: The teller will verify the funds and mark the check as certified.
- Keep the receipt: Retain it until the check clears your account. If the check is lost or stolen, the receipt serves as a record of the transaction.
When To Use a Certified Check
Certified checks might be useful in the following situations:
- Real estate purchases
- Down payments on homes
- High-value private transactions, like buying a car or a collectible
How Much Does a Certified Check Cost?
- Fees vary by bank: Each financial institution sets its own price for certified checks.
- Expect to pay up to about $15: Many banks charge between $5 and $15 per check.
- Some fees may be waived: Certain checking accounts include free certified checks as a perk.
- Always confirm before you go: Calling ahead can help you avoid surprises at the bank branch.
Pros and Cons of Certified Checks
| Pros | Cons |
|---|---|
| Safer than carrying cash or personal checks | Often come with fees |
| Funds guaranteed by the bank | Susceptible to checking scams |
| Widely accepted by many businesses | Not issued by all banks |
Certified Check vs. Other Payment Methods
A certified check isn’t the only payment option out there. Here’s how it stacks up against the alternatives.
- Cashier’s check: Cashier’s checks are ideal for high-value transactions due to the bank’s guarantee.
- Personal check: If you already have a checkbook and the vendor accepts personal checks, this can be the most cost-effective option.
- Electronic transfer: If you want an immediate transaction sent to a trusted recipient, electronic payments are ideal.
Certified Check vs. Cashier’s Check
A certified check is drawn from your account. In contrast, a cashier’s check is drawn from the bank’s funds.
| Feature | Certified Check | Cashier’s Check |
|---|---|---|
| Funding source | Paid directly out of the customer’s bank account, using funds that have been set aside by the bank | Paid by the bank using funds withdrawn from the customer’s account |
| Cost | Varies by bank, may be up to about $15 | Varies by bank, often between $5 and $20 |
| How to order | -Through your bank, usually in person -Not available from all banks and credit unions |
-Through your bank, usually in person -Sometimes available online or by phone |
Certified Check vs. Personal Check
A personal check doesn’t come with any of the guarantees that a certified check comes with.
| Feature | Certified Check | Personal Check |
|---|---|---|
| Funding source | Paid directly out of the customer’s bank account, using funds that have been set aside by the bank | Paid directly out of the customer’s bank account |
| Cost | Varies by bank, may be up to about $15 | Free if you already have a checkbook |
| How to order | -Through your bank, usually in person -Not available from all banks and credit unions |
-Write a check from your checkbook |
Certified Check vs. Electronic Transfers
An electronic transfer is typically faster than a certified check. While an electronic transfer is generally secure, these might not always be feasible or accepted for certain transactions.
| Feature | Certified Check | Electronic Transfers |
|---|---|---|
| Funding source | Paid directly out of the customer’s bank account, using funds that have been set aside by the bank | Funds are transferred electronically from one account to another |
| Cost | Varies by bank, may be up to about $15 | Fees vary — often free but can cost up to $30 or more |
| How to order | -Through your bank, usually in person -Not available from all banks and credit unions |
-Initiated online -Through a mobile app or at a branch |
How To Avoid Scams and Fraud
Certified checks can still be involved in scams. Fraudulent checks may take weeks to be identified, and banks may hold you responsible for the funds sent.
- Use caution when accepting certified checks from unknown parties.
- Contact the issuing bank directly to verify the check.
- Never accept a certified check for more than the agreed amount.
Final Take
- A certified check is a useful and safe payment method because the funds are guaranteed by the issuing bank.
- Many banks charge a fee to issue certified checks, which can be up to about $15 per check. However, not all banks offer them.
- Take a closer look at the fine print and fees before moving forward with a certified check.
Certified Bank Checks FAQ
Here are the answers to some commonly asked questions about certified checks.- Are certified checks refundable if unused?
- Generally, certified checks aren't refundable. If a certified check remains unused, it's possible you can head to the bank for a refund. But the refund availability varies based on the bank.
- What’s the maximum amount for a certified check?
- The maximum amount for a certified check varies from bank to bank. But you won't be able to get a certified check for more than the amount in your bank account.
- Can a certified check be canceled?
- In cases of theft or fraud, a certified check might be canceled. But, generally, certified checks cannot be canceled.
- How long does it take to get a certified check?
- It often takes one or two business days to receive a certified check. But the exact timeline varies based on your financial institution.
- What should I do if a certified check is lost or stolen?
- Contact your bank immediately if a certified check is lost or stolen. The bank representatives can help you through the next steps.
Nicole Valentine, Caitlyn Moorhead and Cynthia Measom contributed to the reporting of this article.