Cashier’s Check vs. Certified Check: What’s the Difference?
Cashier's checks are issued and guaranteed by a financial institution, which means the bank or credit union's own funds guarantee the transaction. Certified checks, however, are guaranteed by the person making the payment—the bank just verifies that the payer has enough money to cut the check, and that their signature is valid.
That makes cashier's checks safer to use. They're also more widely available. Here's a summary of the main differences between a cashier's check and a certified check.
| Cashier's Check | Certified Check | |
|---|---|---|
| Issuer | The bank or credit union | The bank or credit union |
| Guaranteed by | The bank's or credit union's own funds | The payer's funds |
| Funding source | The payer provides the payment amount to the bank, which deposits the money into its own account | The payer writes a personal check and funds the check from their checking account |
| Availability | Widely available | Less widely available |
| Level of security | Very secure | Less secure |
| Fees | $0 to $20 per check | $0 to $10 per check |
What Is a Cashier's Check?
A cashier's check is a type of check guaranteed directly by a bank or credit union. Here's how it works: When you want to get a cashier's check, you pay the bank the amount you'd like to provide to the payee, and the bank cuts a check to you with its own funds. That means the bank is responsible if there are insufficient funds in the payer's account and the check doesn't go through.
That's very unlikely to happen, though, when a bank's funds secure a transaction. Cashier's checks are, therefore, considered one of the most reliable forms of payment. You may need to use a cashier's check to make a down payment on a home or to buy a car.
You might need to be an existing customer of a bank or credit union to get a cashier's check from that institution. Sometimes, however, it's possible to get one at a bank where you're not a customer if you make the transaction at a bank branch with cash. The cost ranges from up to $10 to pick up a cashier's check at a branch to $20 to request one online and have it delivered to your home. Cashier's checks can be free if you're a customer of the financial institution.
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What Is a Certified Check?
A certified check is also a type of check provided and verified by a financial institution. But a certified check is more similar to a personal check than a cashier's check: The money comes directly from your own bank account, which means you're responsible if it bounces.
Certified checks are, however, more secure than personal checks because the bank takes a few extra steps to ensure they're valid and that the associated account has sufficient funds. When you get a certified check, the bank will authenticate your identity, place a hold on your funds to confirm that the check will clear from your account, and add to the check an official bank stamp or watermark.
Increasingly, banks issue only cashier's checks, not certified checks. (You may see either type referred to as an "official check.") If they're available, fees for certified checks can range up to $10. It's common for banks and credit unions to make a limited number of certified checks free to their customers.
Learn more: How Long Are Checks Good For?
Cashier's Check vs. Certified Check
Here are the main differences between a cashier's check and a certified check:
- Source of funds: The funds for a cashier's check are deposited into the bank's own account and paid from there, whereas the funds for a certified check come from the payer's account, like a personal check.
- How they're guaranteed: The financial institution guarantees the funds for a cashier's check, while the payer guarantees them for a certified check. The bank or credit union verifies the validity of a certified check without providing a full guarantee.
- Level of reliability: A cashier's check is more secure than a certified check, since it's a safe bet that money coming from the bank's own reserves won't bounce.
- Cost: Both types of checks may be free at the bank or credit union where you're a customer. If they come with a fee, certified checks are often cheaper.
- Availability: It is more and more common for banks to offer cashier's checks only. If your financial institution doesn't offer certified checks, you'll need to go with a cashier's check instead.
Which Is Better: Cashier's Check or Certified Check?
Both types of checks are safer than a personal check. They're good options if you're paying a large amount, or if you're transferring money to or receiving money from a person you don't know. Cashier's and certified checks also both generally clear faster than personal checks. Below are certain circumstances when one is preferable to the other.
When a Cashier's Check Could Be Better
A cashier's check is a stronger option when:
- You're closing on real estate. A cashier's check is better if you or the payee want the utmost security that the funds will go through, such as when you're making a big purchase like a new home. At closing, you'll typically be required to provide a cashier's check or make a wire transfer to pay closing agents.
- You're making a high-risk transaction. If you're selling an item and you don't know the buyer, requiring them to pay with a cashier's check is the most secure way to ensure the payment will be valid.
- Your bank only offers cashier's checks. Since some banks don't offer certified checks, you may only have the option to use a cashier's check.
When a Certified Check Could Be Better
Alternatively, a certified check may be sufficient when:
- You're making a smaller purchase. If you're buying or selling an item that's less valuable, you may not need the highest level of security to ensure the payment's validity. A certified check is safer than a personal check and could suffice in these instances.
- You need basic verification of payment. What sets apart a certified check from a personal check is that the bank verifies the identity of the payer and the availability of the funds. If you want to confirm the authenticity of the transaction, without needing a bank's guarantee that the funds will be paid, a certified check will fit the bill.
- It costs less. A certified check is better if a cashier's check isn't required, and it's cheaper or more convenient to get a certified check from your bank or credit union.
What Happens if You Lose a Cashier's or Certified Check?
Since they're official forms of payment, it's difficult to replace a cashier's or certified check if you lose them. Talk to the bank immediately to understand how to report and replace a lost cashier's or certified check.
Replacing a cashier's check in particular is complex. You'll likely have to buy an indemnity bond in the lost check's amount, which is a type of insurance that confirms you're responsible for covering the funds if a lost check turns up later and the payee deposits it. You won't be able to simply stop payment on the check.
If you lose a cashier's check, reach out to insurance companies you already have a policy with and ask if they sell indemnity bonds. If not, you may have to go through an insurance broker. Even with an indemnity bond, the bank may require you to wait up to 90 days before you can get a replacement check.
The Bottom Line
Whether to use a cashier's check or a certified check often comes down to the payee's preference. But if given the option, look into your bank's fees for each, and consider the extra security measures that a cashier's check provides. For a large money transfer like making a down payment or buying a car, you may decide a cashier's check's additional safeguards are worthwhile.
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About the author
Brianna McGurran
Brianna McGurran is a freelance journalist and writing teacher based in Brooklyn, New York. Most recently, she was a staff writer and spokesperson at the personal finance website NerdWallet, where she wrote "Ask Brianna," a financial advice column syndicated by the Associated Press.
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