The satisfaction that comes with taking a check to the bank and clearing it without issue is out of this world. Cashier’s check vs certified checks simply brings to the limelight all you need to know.
Learning about the differences between a cashier’s check and a certified check is quite important. If you have to make a choice, this knowledge will help you make the right choice.
Generally, cashier’s checks are considered the safest because they are less susceptible to fraud. But is this all it is to know about cashier’s checks?
The table of contents highlights the numerous questions regarding these checks answered in this article.
Cashier’s Check vs Certified Check: What is a Cashier’s Check?
A cashier’s check is sometimes called an official check. It is not a regular check issued by a customer in a bank.
When a check is drawn from the bank’s own funds and not yours, such a check is a cashier’s check. To qualify as a cashier’s check, the ban must guarantee its payments.
In simple terms, a cashier’s check is a type of official check that is issued by a bank. The term refers to a check written by a financial institution on its funds and signed by a representative. Mostly, banks and credit unions guarantee cashier’s checks for a fee.
How Does a Cashier’s Check Work?
Cashier’s check simply enables banks to pay the holder from the bank’s account. However, the bank takes money from your account and puts it in its own account before clearing the check.
Basically, once you purchase a cashier’s check from your bank, the bank takes money from your account and deposits it into its own account.
Afterwards, the bank prints out the cashier’s check with the payee’s name. It also includes the amount to be paid. However, it prints the banks account numbers in place of yours.
So, what the payee sees on the check is the bank’s account number instead of yours.
When this is done, the payee deposits the cashier’s check for payment and the funds are drawn from the bank’s account.
How Do I Get a Cashier’s Check?
It is easier and simpler to get a cashier’s check when you have an account in the bank. So, the first step to getting a cashier’s check from any bank account is to open an account at that bank.
You can get a cashier’s check from any bank or credit union you have an account with. Simply walk into any branch of the bank, or request one online.
First, you must tell your bank the exact amount you need. Also, state clearly the person or organization that should receive the check.
Afterwards, the financial institution will now draw the cashier’s checks against the institution funds.
Afterwards, you should pay the exact amount on the cashier’s check. It is important to include any cashier’s check fee your bank or credit union charges.
To get a cashier’s check you must tender the following:
- Name of payee
- Exact check amount
- Valid Identification
- Funds that cover the check amount and any bank charges.
Although it can be extremely difficult to get a cashier’s check without a bank account, it is possible for some reasons. For instance, if you need to close an account on behalf of a deceased, you can get an official check if you are a beneficiary.
Also, if your account gets closed with an overdrawn balance, some banks may demand you purchase a cashier’s check to settle up what you owe.
Do Cashier’s Checks Clear Immediately?
Mostly, personal checks clear within two business days. However, if your check is drawn on the same financial institution that holds your account, it can clear faster in one day.
What is the Maximum Amount for a Cashier’s Check?
If you’re physically getting a cashier’s check, there is often no limit. However, you must have sufficient funds to cover both the check amount and any other fee.
Most banks impose a maximum amount on checks ordered online. The limit varies from bank to bank. It ranges from $2, 000 to $250, 000 per check, mostly.
How Much Does a Cashier’s Check Cost?
There is no specific amount for the cashier’s checks. Most banks will waive the fee for long time account holders. Especially, those who meet certain balance requirements.
Typically, it costs about $10-$15 for accounts that need to pay the cashier’s check processing fee.
Cashier’s Check vs Certified Check: What is a Certified Check?
A certified check is a type of check that permits the bank to pay the bearer directly from your personal account.
However, the bank must first guarantee that you have enough cash in your account when the recipient decides to deposit the check.
Usually, it is used to reduce the risk of non-payment in case the writer of the check does not have sufficient funds in their accounts.
Many businesses prefer a certified check. This ensures they will receive their funds.
How Does a Certified Check Work?
Just like its name, certified checks simply means the bank has certified that the issuer has sufficient funds for it.
If you issue a certified check, the bank will first verify the customer’s signature. Afterwards, they certify that the amount on the check is in the account.
Then, they simply set the check aside for clearing. To show that a check has been certified, banks will add a stamp, a signature, or any other unique marking.
How Do I Get a Certified Check?
Though you can get a certified check from any bank, it is easier to go to a bank where you have an account.
Basically, you need to be present physically, to get a certified check. It is best if you place a call across to the institution before visiting.
To get a certified check, you must provide the amount on the check, the name of the recipient, and any further requirements.
Afterwards, you must verify your identity. This simply means you must prove to the bank or credit union employee that you have the funds in your account.
Most banks may demand you provide a photo I.D for verification. Finally, a bank officer signs off or certifies your check by stamping it.
Do Certified Checks Clear Immediately?
Once you have sufficient funds that cover a certified check, it usually clears in one business day. Citizen bank assures same-day withdrawal.
So, you the recipient is likely to get funds the next day. It is important to note that once certified checks are handed over, you cannot stop payment.
What is the Maximum Amount for a Certified Check?
There is no specific amount for a certified check. However, policies vary from bank to bank. If you need to have access to a larger amount, cashier’s check is a safer option.
How Much Does a Certified Check Cost?
Most banks call both certified checks and cashiers check official checks. And, the fee for these checks vary from one bank to another.
For instance, Ally bank offer free official checks while Bank of America demands $15 for certain account holders.
Also, official checks at capital one cost $20 online and $10 in branch. So, how much you pay for a certified check varies from bank to bank.
Cashier’s Check vs Certified Check: Differences
From the foregoing, the notable differences between cashier’s check and certified check is glaring.
Basically, one is signed by the customer. While the other is signed by the bank. Certified checks are drawn on the check writer’s account while cashier’s check are drawn from the bank’s account.
When it comes to safety, cashier checks are considered safer since funds are drawn from the bank’s account.
From the recipients end, the issuers account details are seen on a certified check. But, the bank’s account details are on a cashier’s check.
In addition, a representative of the bank, a cashier, signs a cashier’s check. While the customer signs the certified check.
To get a certified check, you must physically request for one in your bank. However, cashier’s check can be gotten both online and offline.
In the case of a cashier check, the bank is held responsible if the check bounces. But the individual making the payment of a certified check is held responsible if the check bounces.
Certified Check vs Cashier’s Check : Similarities
They are both called official checks. This is a significant similarity between certified checks and cashier checks.
Also, to get both types of checks, you need to visit a bank where you have an account. Interestingly, they are both relatively inexpensive and are considered more secure and less susceptible to fraud than personal checks.
In addition, recipients of both types of checks get assurance that the checks will clear. Certified checks and cashier’s checks cost ranges from $15 to $20. And, they are both commonly used for large amounts. They are usually best when the buyer and seller don’t know each other.
Cashier’s Check vs Certified Check FAQs
Both checks are give the recipients assurance that the checks will clear. Which is better for you is highly dependent on what you need at each moment.
Yes, certified checks are as good as cash because the value is guaranteed.
Cashier’s checks are preferable to certified checks because the bank is held responsible if the check bounces.
It is best to use a cashier’s check if you need to make large payments. Especially, when personal checks are not acceptable. Large payment surmounts to anything above $1, 000.
Although certified checks and cashier’s checks are both considered official checks, they have slight differences. Cashier’s checks can be considered certified funds because it has been guaranteed by the bank.
If you run a large scale business that requires you make large payments often, it is important to consider either a cashier’s check or certified check.
This article analyzes the differences as well as the similarities between the two. This will enable you to make the right choice. Looking forward to requesting an official check-in in 2022, read through this piece to discover which is best for you.
- Key.com – Cashier’s Check vs certified check
- Forbes.com – What is a Cashier Check?
- Investopedia.com – Understanding a Certified Check