Cashier’s Check vs. Certified Check

Which type of check should you give to a recipient? Many people decide between cashier’s checks and certified checks for larger purchases. These checks allow you to transfer funds to a recipient, but each check has strengths and weaknesses. This guide will walk through some of the differences between these checks so you can decide which one is right for you.

What Is a Cashier's Check?

A cashier’s check is a check issued and guaranteed by the bank or credit union. These checks are more secure than traditional checks and are usually for high-end purchases. Transactions that are $1,000 or higher require a cashier’s check. These checks come into play when you are buying a car, house or similar high-ticket product or service.

What Is a Certified Check?

A certified check is issued and verified by the bank or credit union. This check offers validation that the writer has enough funds to cover the payment. It’s a more secure type of check than a personal check and can help facilitate deals between parties who do not know each other very well. Just like with cashier’s checks, these checks are used for large purchases.

Differences Between Cashier's Check and Certified Check

While cashier’s checks and certified checks are used for the same types of purchases, they have a few differences. These are the key details.

Issuance

The bank uses its own funds to issue and guarantee a cashier’s check while the bank earmarks money in your account for a certified check. You have to provide your ID, the amount you want to pay, the recipient’s name and the account you want to withdraw funds from. 

Guarantee

Cashier’s checks have stronger guarantees than certified checks. Certified checks have a guarantee from the individual giving out the check. The bank is held responsible for a cashier’s check and will come up with the difference if the check bounces. The bank does not have this same liability with a certified check. Both checks offer more security than personal checks, but cashier’s checks offer additional security.

Verification Process

The bank will confirm the authenticity of both checks. The recipient has to provide the check’s number, the account holder’s name and the amount on the check. The bank can then verify that the check is legitimate.

Acceptance

Both of these checks have wide acceptance for large purchases. Cashier’s checks may be the only choice if the purchase is large enough. Certified checks also cover a lot of ground based on where they get accepted.

Cost and Fees

You will incur costs and fees for both types of checks. Cashier’s checks typically cost $10-$20, while certified checks typically cost $15-$20. Certified checks tend to be more expensive than cashier’s checks.

Availability and Accessibility

Cashier’s checks are easier to find than certified checks. Some banks do not offer certified checks but provide cashier’s checks for their customers. 

When to Use a Cashier's Check

Cashier’s checks give both parties more confidence that a deal will go through without any issues. A cashier’s check can be beneficial under the following scenarios.

Large Purchases or Transactions

A cashier’s check can provide greater peace of mind for purchases above $1,000. Offering a personal check doesn’t give the seller as much confidence since the check can bounce.

Real Estate Transactions

Cashier’s checks can simplify real estate transactions and help with the down payment and closing costs. Many sellers and agents require cashier’s checks to ensure the seller will receive funds. If the check bounces for any reason, the bank becomes responsible for providing the recipient with the necessary funds.

Rental or Lease Payments

Some landlords request cashier’s checks for rental and lease payments. These checks can also help if you want to pay for your rent or lease for the next several months. Cashier’s checks provide proof of payment and are easier for landlords to track than paper cash.

Payment to Unknown or Untrusted Parties

If you haven’t done business with someone yet, a cashier’s check can put you both on good terms. Cashier’s checks offer more security and help sellers engage unknown or untrusted parties with more confidence.

Settling Debts or Legal Obligations

A cashier’s check is a reliable and verifiable payment method that can help with settling debts or legal obligations. You want to make sure the payment goes through without any issues and remains trackable throughout the process. You can verify that you made the payment if necessary.

When to Use a Certified Check

A certified check can help out with some purchases and provide both parties with greater ease of doing business. These are some of the scenarios when a certified check makes sense.

Payment for Goods or Services

A certified check can help you cover payments for goods and services. Certified checks give the business owner more confidence that the check will go through instead of bouncing.

Personal Transactions

Certified checks can help with personal transactions. These personal transactions are typically for large expenses, such as buying a used car. Sellers may request certified checks for these transactions so they know the check is legitimate and guaranteed.

Settling Legal Obligations

You can use a certified check to settle legal obligations. The check is easy to track, so you can verify that you made the payment. Certified checks also eliminate the risk of creating additional hassles for legal disputes.

Rental or Lease Payments

Some landlords and property management companies require certified checks for rental or lease payments. Certified checks provide proof of payment and give the landlord or property management company reassurance that they will receive funds. 

Cross-Border or International Payments

A certified check offers a widely accepted payment method for cross-border and international transactions. You can also track these checks and see when the recipient cashed in on the check.

Getting the Right Check for Your Purchase

You won’t have to worry about cashier’s checks or certified checks for smaller purchases. However, if you push above $1,000 for a purchase, you may need one of these checks. These checks give both parties more confidence to do business with each other.

Frequently Asked Questions