Cashier’s check vs. certified check: What’s the difference?
When making a major purchase, like a car or house, you may be asked to pay with a cashier’s check or a certified check. So it’s important to understand the differences between the two.
A bank, credit union or other financial institution issues cashier’s checks. On the other hand, certified checks are personal checks signed by an account holder whose financial institution certifies the check.
What you’ll learn:
- Cashier’s checks and certified checks are both frequently used for big purchases.
- A cashier’s check uses funds from a financial institution’s account, while a certified check uses funds from a customer’s account.
- Cashier’s checks usually include more security features than certified checks do.
- The fee to buy a cashier’s check tends to be less than the fee to buy a certified check.
What is a cashier’s check?
A bank or credit union issues a cashier’s check and guarantees that funds will be available when it’s cashed.
When a customer obtains a cashier’s check, the financial institution shifts money for the check from the customer’s account to the bank’s or credit union’s account. The check is written to a third party, such as a title company handling a home purchase.
A cashier’s check is signed by a representative of the financial institution, not the account holder.
Where can I get a cashier’s check?
You can get a cashier’s check at the branch of a bank or credit union, or you may be able to order one through a financial institution’s website or mobile app. In many cases, only a current customer can get a cashier’s check from a financial institution, and a financial institution may charge a fee for it.
The check displays the name of the financial institution, the name of the person or business being paid and the dollar amount. “CASHIER’S CHECK” is normally printed at the top of the check, while information at the bottom of the check includes the financial institution’s routing number and bank account number.
A cashier’s check generally has no dollar limit, meaning it can be written for any amount. But it’s often used for purchases of $1,000 or more.
What is a certified check?
A certified check is a personal check that a financial institution or bank verifies, confirming there are sufficient funds in the payer’s checking account. The financial institution also marks the check as “certified.”
Funds for a certified check come from the customer’s account, not the financial institution’s account. The bank or credit union typically reserves the dollar amount of the check in the customer’s account so the money cannot be spent on anything else.
Key differences between a cashier’s check and a certified check
Whether someone picks a cashier’s or certified check can depend on factors such as processing time, fees associated with each type of check, the seller’s requirements and personal preferences.
| Cashier’s check | Certified check | |
|---|---|---|
| Who signs it? | A bank or credit union | The account holder and the bank or credit union |
| What does it cost? | Typically $10-$15 | Typically $15-$20 |
| Where can you get it? | In person or online from your bank | In person and only available at some banks |
| How does it work? | Funds are transferred from your bank account to the bank or credit union’s account. | The bank verifies the funds are in your account and designates them for the purchase. |
How to avoid cashier’s and certified check fraud
While cashier’s and certified checks are generally safe, they aren’t immune to fraud. For example, one common scam involves an online buyer offering to purchase an item with a cashier’s check and paying more than the sale price.
After depositing the check, the buyer requests that the seller wire back the excess amount. After the seller wires the money, the bank might confirm the check is fake, leaving the seller responsible for the lost funds.
These nine tips might help you avoid cashier's and certified check fraud:
- Be careful about taking a check from anyone you don’t know.
- Be wary of accepting a check from someone in another country.
- Reject a check that’s made out for more money than was supposed to be paid.
- Ask that a cashier’s or certified check come from a local financial institution or a financial institution that operates a local branch.
- If you’re being paid for something that was sold online, don’t ship the purchased item until you have confirmed that the check is legitimate.
- Contact the bank or credit union that issued the check to verify its authenticity.
- When buying or selling online, consider using electronic payments instead of paper checks. Electronic payment methods may provide more protection than cashier’s or certified checks.
- Resist pressure to send back the money right away or return “excess” funds by wire transfer.
- Ignore any “free” prize offers that require you to pay money.
Cashier’s and certified check FAQ
Here are answers to several frequently asked questions about cashier’s and certified checks.
What is the downside of a cashier’s check?
While cashier’s checks are usually a safe form of payment, there is the risk of fraud. For example, scammers can create counterfeit cashier’s checks. And since cashier’s checks are nonrefundable, the amount you think you received may not be returned to you.
How much do cashier’s checks and certified checks cost?
A certified check may cost more than a cashier’s check. On average, a financial institution charges from $10 to $15 for a cashier’s check and $15 to $20 for a certified check. But it’s a good idea to check with your bank for more information.
Do certified checks clear immediately?
Federal regulations mandate that banks release funds from certified checks one business day after the check is deposited.
Which is better: A cashier’s check or a certified check?
Both cashier’s checks and certified checks are secure forms of payment. However, cashier’s checks are generally considered the safer of the two, despite sometimes being susceptible to fraud. They are viewed as safer because they contain more security features than certified checks, and they are written on a bank’s own account instead of on a customer’s account.
Key takeaways: Cashier’s checks vs. certified checks
Cashier’s checks and certified checks are frequently used for big purchases because they offer more security than other forms of payment. However, cashier’s checks are considered safer than certified checks and even money orders because they generally provide more security features.
And if you have a choice, you might want to consider using a credit card. You can compare Capital One’s card options to see which one may be right for you.
