A "certified check" is a check the bank has verified contains adequate funds and a valid signature. A certified check's funds can be used for nothing more than to cover the amount written on it. The bank stamps or marks the cheque to show that it has been certified.

How To Use A Certified Check

Certified checks are used for significant purchases like a down payment on a car. In addition, they are utilized when the purchaser and vendor do not personally know one another. You may reassure the seller of an expensive item you're purchasing online that you have the money to cover it by sending a certified check. This level of certainty is not available via a regular check.

The Fees For A Certified Check

An additional fee is associated with using a certified check instead of other payment methods. The going rate is $15–$20. In addition to the higher cost, finding a bank that would issue a certified check is a hassle. Many financial institutions provide money orders and cashier's checks but not certified checks.

Not even the largest; most conventional banks provide them. Banks provide them as a service to their clients. Still, they haven't been as popular as cashier's checks or money orders, according to Ben Craigie, vice president of the Massachusetts Bankers Association. Certain financial institutions indeed lack such features, but only a select few.

Advantages of Using a Certified Check

When making a large purchase, a certified check might come in handy. Carrying a large sum of cash is inconvenient and risky but also impractical when making a large purchase like high-priced equipment or paying for house upgrades.

Writing a check is more convenient and secure than carrying cash, but the payee may want additional security features not included in a standard check. The beneficiary of a certified check may rest certain that the bank has validated the check's authenticity, the signer's identity, and the availability of the cash. It's a safe way to get the money you can count on.

Certifying a check ensures the following:

• The person writing the check has permission to use that account to write checks.
• The check has not been tampered with in any way and is genuine.
• It is a genuine signature.
• The account is in good standing and operational.
• For a limited period, the designated funds can be used to write that cheque.

What's The Distinction Between A Certified Check And A Cashier's Check?

However, despite common usage, "certified check" and "cashier's check" are not synonymous. Certified checks are written on the customer's bank account, whereas cashier's checks are on the bank's money.

Because of their status as official check instruments, certified checks are often grouped along with cashier's checks. A "certified check" is a personal cheque verified by a bank from a legitimate bank account. The bank guarantees that the signature on the check is genuine and that sufficient funds are available to cover the transaction.

A certified check will have a signature, stamp, or marking that attests to its legitimacy. To use a cashier's check, you have your funds transferred from your account, and then the bank provides you a check in the amount of the transfer, made out to the other party in the transaction.

A Brief Overview of Certified Checks and the Development of Checks

The ancestors of the current certified check date back to the ancient world. Numerous individuals think the check's ancestor existed among the ancient Romans. 1 Each civilization had its unique method of issuing checks, but they all served the same purpose of standing in for cash.

The Bank of England issued the first pre-printed check-in in 1717. The earliest known check written in the United States was issued in the 1790s. The 20th century saw a rise in the popularity of modern checks.

Avoiding Scams: Steps To Take

Certified checks are equivalent to cash since the issuing bank has already confirmed the account's authenticity and signature and has reserved the necessary money to cover the check. A certified check is a safer form of payment than a personal check, although it is still feasible to forge one.

Trust but verify when dealing with official checks like certified and cashier's checks. Ask the bank that certified the cheque to verify its legitimacy to guard against fraud. If you have any doubts about the item's authenticity, you may always phone the bank on which the check is written.

Don't dial the number printed on the cheque. Check the bank's number on your own to make sure. Check the bank's website, drop by a physical location, or utilize any other legitimate channel.