Vault’s Viewpoint
- A certified check proves that you have the funds to cover the amount of the check.
- Most banks don’t offer certified checks anymore, and the ones that do may charge a small fee for the privilege.
- If you think a certified check might be fraudulent, contact the issuing bank and ask them to confirm the certification.
What Is a Certified Check?
A certified check is a check that has been certified by the issuing bank. When you write a certified check, the bank adds an official stamp or marking to the check to prove it has been certified. Your bank will confirm that you have enough money to cover the cost of the check—and then it will put a hold on the amount of money written on the check, keeping it in reserve until the check is deposited or cashed. That way, you don’t run the risk of overdrafting your bank account.
How Much Does a Certified Check Cost?
Not all banks offer certified checks, but those that do often charge a small fee to cover the costs of the certification process. These fees might run between $15 and $20, although that could differ depending on the bank. Contact your bank directly to learn whether they offer certified checks and how much those checks might cost.
When To Use a Certified Check
Certified checks can be extremely useful if you are planning on making a big purchase, such as a down payment on a home. If you are purchasing a car, boat or other vehicle in cash, a certified check could prove that you have the funds to cover the cost.
If your bank does not offer certified checks, you can use a cashier’s check instead. These checks also prove that you have the funds to cover the cost of the transaction, and cashier’s checks also allow the necessary money to be held in reserve until the check is deposited or cashed—ensuring that you don’t accidentally overdraw your account or bounce your check!
Certified Check vs. Cashier’s Check
When you write a certified check, the bank certifies that you have the money in your checking account and then puts a verified stamp or marking on the check. From there, the money is held in reserve until the check is deposited or cashed.
When you write a cashier’s check, the bank withdraws the money from your bank account and transfers it to its own accounts. From there, the bank writes a check for the same amount of money and gives it to you to give to the recipient. A cashier’s check is signed by the bank and provides assurance that the check is legitimate and can be honored. That said, fraudulent cashier’s checks do exist—so contact the issuing bank if you have any concerns about a cashier’s check you recently received, especially if it came from somebody you do not know.
How To Get a Certified Check
The best way to get a certified check is to contact your bank and ask them if they offer check certification. If your bank does not offer certified checks, ask them if you can get a cashier’s check instead. A cashier’s check serves the same purpose as a certified check and is a good alternative if you cannot get a certified check. Some banks offer free cashier’s checks, and others charge a small fee between $10 and $15, in most cases.
Ways To Protect Against Fraud
There are many financial scams out there, and several of them involve cashier’s checks or certified checks. If a person mails you a large check and then asks you to send them back a portion of the money, for example, it’s likely that you are being scammed. The check will nearly always turn out to be fraudulent, even if it appears to be a certified check or a cashier’s check.
The best way to protect yourself against fraud is to verify any certified checks or cashier’s checks you receive before cashing them. Contact the issuing bank and ask them to confirm the check. If the bank confirms the check is legitimate, you can deposit it without fear of fraud.
Frequently Asked Questions
Are There Disadvantages to Using Certified Checks?
Since certified checks are rarely used these days, it may be difficult to find a bank that issues them. Likewise, the person who receives your certified check may not understand the importance of the certification—and may suspect that the check is fraudulent. You may want to use a cashier’s check instead.
How Long Does It Take a Certified Check To Clear?
Certified checks are prioritized over other types of checks, which means that they often clear more quickly. A personal check may take two or three business days to clear, for example, while a certified check generally takes one. Cashier’s checks are prioritized in the same way, in case you were wondering about certified checks vs. cashier’s checks.
Can a Certified Check Bounce?
A legitimate certified check cannot bounce, since the bank has already put the amount of the check on reserve until the recipient deposits or cashes the check. However, a fraudulent certified check can bounce—which is why it’s important to verify certified checks with the issuing bank, especially when you receive a certified check from a person you don’t know.
