Have a big expense coming up? Here’s how cashier’s checks vs. certified checks stack up as payment methods

The bottom line? With the bank backing the check, a cashier’s check is generally the more secure way to pay. While they have fees, the costs can be worth it for important transactions.

Cashier’s check vs. certified check 

Both cashier’s checks and certified checks are bank-issued checks guaranteed by the issuing bank. With this guarantee feature, both check types are safer and more secure forms of payment than a check you write from your account. However, they work in slightly different ways.

When you get a cashier’s check, you transfer money from your account into the bank’s account. Then, the bank writes a check from their account and signs it. By doing so, the bank guarantees the check will clear since it already has the funds.

When you get a certified check from a bank, the check is drawn from your account. Your name and account number appear on the check, and both you and a bank representative sign the check. This second signature by the bank says they’ve earmarked funds in your account to “certify” the check will clear. 

Before you decide which type of check is best for an upcoming transaction, it helps to understand more about each. 

What is a cashier’s check? 

A cashier’s check is a type of official check issued by a bank or credit union. Compared to a personal check that you write and sign, a cashier’s check is written and signed by the bank. The issuing financial institution also guarantees the check, making it a more secure form of payment.

So, why a cashier’s check? When doing business with someone you don’t know, both parties want a smooth transaction. 

A cashier’s check lets a recipient know the check will clear. There’s also the additional layer of security for sellers since a cashier’s check is drawn on the bank’s account, not yours. This extra security is why many title companies require that buyers and sellers pay closing costs when buying a house using guaranteed funds like a wire transfer or cashier’s check.

How cashier’s checks work and how to get one

A cashier’s check—also called an official check—is drawn using bank funds and signed by at least one representative of the issuing bank or credit. These checks may have other features that indicate they’re official checks, including watermarking, the words “cashier’s check” on the check stock, or other stamps or special marks that can vary by financial institution.

Unlike a check you write from your checking account, you’ll need to connect with your bank or credit union to get a cashier’s check. Typically, you’ll need an account already, but some financial institutions will write cashier’s checks for non-customers in certain circumstances. Some banks will also waive the fee for a cashier’s check for customers holding certain account types

1. Decide how to request your check. Depending on your bank, you can request a cashier’s check through your online banking platform, at a bank branch, or by phone. A quick call to your bank can let you know which options are available.
2. Gather the necessary information. When you request a cashier’s check, you must have the recipient’s name, exact check amount, and identification. For I.D., it’s essential to check with your bank to see which identification types they accept and how many pieces of I.D. they require.
3. Request your check. You’ll pay the bank’s fee when you submit your check request. Then, the bank will withdraw the money from your checking or savings account to cover the check and deposit it in the bank’s account. The bank will then issue the cashier’s check from the bank’s account, and a bank employee will sign the check. And even though the check isn’t drawn from your account, you’re always listed on the check as the payee.
4. Don’t forget the receipt. You can print your transaction confirmation screen if you’re requesting a cashier’s check online. If requesting via phone or in person, just ask the bank representative how they issue receipts.

Cashier’s checks can either be cashed or deposited. For both transaction types, the funds will usually be available faster than if you paid with a personal check. Some banks can release payment the next business day, while others may take longer.

Pros and cons of cashier’s checks

Since your bank vouches for the funds backing a cashier’s check, it’s a reasonably secure way to pay. However, they have their downsides—which may or may not apply to your circumstances.

If you present a cashier’s check to your bank for payment and they quote you a longer hold time on the funds than expected, scams could be the underlying reason. “With the advance of color printers, they’re easy to duplicate and perpetuate fraud,” says Carma Peters, president and CEO of Michigan Legacy Credit Union. She notes that her credit union holds cashier’s checks for an extended period to ensure they’re valid.

To avoid being the victim of a fraudulent cashier’s check, the Federal Deposit Insurance Corporation (FDIC) offers a guide with common scams and tips for spotting a fake check.

What is a certified check? 

A certified check is also an official bank check, but it’s drawn on your account instead of the bank’s. You can think of it as a check halfway between a personal check and a cashier’s check: Your money, your account, and the bank’s verification that the funds required to pay the check are in your account.

So, why a certified check? When someone writes a personal check, there’s no way to tell if the check will clear. However, a certified check guarantees that the bank has verified that you have the money to pay the check. Most banks put a hold on the funds required to cover a certified check as extra insurance.

You may use a certified check for many of the same reasons you might use a cashier’s check—buying a vehicle from a private seller or even closing on your house. However, since certified checks are drawn on your account and not the bank’s, a cashier’s check is still considered the more secure way to pay and get paid.

How certified checks work

Certified checks are available from a wide range of financial institutions. It’s important to note, however, that many banks and credit unions only offer one type of check or the other. If your bank offers certified checks, getting one is relatively simple.

1. Decide how to request your check. Certified checks are always available at a local branch when offered by your bank. You may also be able to request one online or via phone.
2. Gather the necessary information. Ensure you have the recipient’s name, exact check amount, and identification handy before initiating your request.
3. Request your check. When requesting the check, you’ll pay the bank’s fee, and a teller will print out a special check with your name and account information. They may fill in the recipient’s name and check amount for you, or you’ll fill it in by hand. Then the bank will stamp “certified” or some other designation on the check to inform the payee that they’ve verified your identity and that you have the funds to cover the check.
4. Don’t forget the receipt. A teller or your online banking portal can provide a receipt for your transaction.

Bank fees for certified checks can vary widely. Some banks may not charge for the service, but others could charge up to $15. You can check your online banking portal or speak with a teller to get your bank or credit union’s specific costs.

Pros and cons of certified checks 

Since certified checks are also a type of official check, they’re more secure than accepting a personal check from a stranger. Yet they have drawbacks, including availability and privacy.

How to choose between the two 

As you weigh using a cashier’s check vs. a certified check for a transaction, the one you use will often come down to costs, availability, and privacy preferences.

For example, if your bank only offers one type of official check, you’ll likely be limited to that payment option. However, if your payee accepts both and your bank offers both, you can choose the least expensive check option. 

And finally, consider your privacy needs. Having your account information invisible might be fine when paying someone you know. In this case, a certified check would work well. But when dealing with strangers, you might feel otherwise.

“Cashier’s checks can be beneficial in situations where the purchaser doesn’t want their bank account information to be disclosed to the recipient,” says Matt Steenson, head of consumer banking at PNC Bank. In this case, you’ll want the privacy that a cashier’s check offers.

The takeaway

When comparing a certified check vs. cashier’s check, the cashier’s check is the clear winner. With their broad-sweeping availability, privacy features and bank guarantee, buyers and sellers come out ahead on large transactions. While sellers need to be on the lookout for fraudulent cashier’s checks, you can always delay completing the sale until the check has cleared and the cash is in your account.