What Is a Certified Check?


Chances are, you don’t write nearly as many checks as you used to. Years ago, people wrote personal checks for everything from an oil change to the grocery store. It wasn’t until the late 1980s or the early 1990s that many grocery stores even accepted credit cards.


If you were to write a personal check to your mechanic or grocery clerk today, it’s likely they will give you a perplexed look and may even need to seek approval from their manager.

There are times, however, when checks are necessary. In these moments, it’s often critical to ensure that the amount written on the check is in the bank account of the person writing it.

This is the purpose of a certified check. It’s a stamp of approval from the financial institution, telling the recipient that they can be sure that the money will successfully transfer to their account once deposited.

Certified checks are useful for larger purchases and transactions that are not appropriate for credit cards, or when you don’t want to carry cash.

What is a certified check?

A certified check is a personal check written by a bank account holder that has been verified and guaranteed by the issuing bank. In most cases, it’s just a regular check that has been written out in advance. The bank then verifies that the funds are available and stamps the check as certified by the institution.

As soon as the bank has certified that the money is in the account, it sets aside that amount in your checking account. You won’t be able to withdraw it or otherwise use it. Instead, it’s held until it has been deposited into the account of the recipient.

Can a certified check bounce?

It’s virtually impossible. This is why certified checks are a popular form of money transfer for large amounts of cash where a debit or credit card may not be appropriate or feasible.

The Difference Between Cashier’s and Certified Checks

A cashier’s check goes through the same verification process as a certified check, and both are considered “official bank checks.” So, where does the difference come in? The answer is where the money originates.

With a certified check, the bank verifies that the money is in your checking account. Then, the funds are drawn when the check is deposited or cashed. Cashier’s checks work the same way. The difference is the funds are not drawn from a bank account but paid for with cash.

Instead of guaranteeing money is in an account, you purchase a cashier’s check in a way similar to a money order. Other than this small difference, certified and cashier’s checks are virtually identical.

How to Get a Certified Check

It starts out just like any other check. The first thing you need to do is fill out the amount, the intended recipient, and sign it. Then, take the check to your bank, and a bank representative will certify it for you.

This means that the bank representative will verify that you have the money in your account and put it on hold. Then, they typically stamp your check as certified. This amount is then guaranteed by the bank to the recipient of the check.

You must have a checking account to obtain one. If you do not have one, you should be able to get a cashier’s check instead.

You’ll just need to bring cash or use a debit card if the amount is small enough, and it should work just the same as a certified check. In the end, a cashier’s check comes out of the bank’s account instead of your checking account.

Money Orders

A money order may also be an option, though money orders usually have a limit to their value. The U.S. Post Office, for instance, issues money orders, but their limit is only $1,000. Thus, money orders typically act the same as a cashier’s check.

You pay cash, and the money is drawn from the issuer’s account, not your personal account. On the other hand, certified checks can be for any amount as long as you have sufficient funds in your account.

How much does a certified check cost?

No matter what you do with your bank these days, there always seems to be a fee attached. Whether it’s an overdraft fee or high ATM fees, they seem to be ubiquitous. Getting a certified check is no different, and most banks and credit unions charge you a small fee to obtain one.

What’s the average cost of a certified check?

Expect to pay anywhere between $8 and $15. This fee is sometimes waived if you have a specialized or premium account with your bank. There are also some occasions where the bank doesn’t charge account holders for it or offers cashier’s checks at no charge.

Check with your bank or credit union. Policies vary based not only on the bank or credit union but also on your relationship with them. If there is a fee, it never hurts to ask the teller to waive it. You may get lucky.

What happens if you lose your certified check?

Here’s a quick word of advice: do not lose your certified check.

As long as it isn’t fraudulent, it has been guaranteed by the bank that has issued it. Therefore, they can’t simply cancel the check, as that would defeat the entire purpose of it being certified in the first place.

They also can’t just issue you a replacement check because then they would have two certified checks they are guaranteeing on the same amount of money.

So again: do not lose your certified check.

Indemnity Bond

If you do, your bank will likely make you get an indemnity bond. Ever heard of an indemnity bond? Hopefully, you’ll never have to deal with one.

What exactly is an indemnity bond?

It’s a bond that guarantees the bank is not liable for the second check, since they’re already liable for the first check. You’ll need to contact an insurance broker to see if they’ll even issue you an indemnity bond.

If they do, your bank may still force you to wait 30 to 90 days before issuing you a replacement. Depending on your needs for the check funds, this could delay it significantly.

When and Why to Use a Certified Check

Legitimate certified checks are verified and guaranteed. They’re considered just as good as cash.

When you deposit one, the receiving bank usually makes you wait only one business day before accessing the funds. However, if the amount is over $5,000, they may make you wait until the check has cleared.

Using a certified check is a great way to avoid carrying large amounts of cash around. It’s a lot easier to have one piece of paper than hundreds of bills. It keeps you from potentially being robbed and ensures a smoother transaction.

Large Purchases

Certified checks are also great for large purchases where you can’t use a credit card. For example, you will likely need one if you’re making a down payment on a house or purchasing a car with cash.

The main reason to use a certified check is to protect you and the receiver from having to carry large amounts of money. However, it also comes with another benefit.

Paper Trail

Certified checks and cashier’s checks both create a paper trail for a purchase and can protect you if any disagreements or misunderstandings arise between you and the recipient.

They can also act as proof of purchase. It gives the receiver peace of mind that a hastily written personal check cannot. That’s not to say it’s impossible to forge a certified check, but it is a lot less likely.

Spotting a Real vs. Forged Certified Check

It’s not fool-proof, and as we’ve seen time and again, just about anything can be forged, faked, copied, or stolen. This is true for a certified or cashier’s check as well, though they are more difficult to forge than a personal check.

Here is a short list of things to check for to determine if your certified check is real. In the end, however, it’s up to you to make the final decision on the matter. So, if you’re still unsure, deposit it and wait for it to clear before completing the transaction.

  • Look for a watermark – If the check was specially printed by the bank, it might have additional identifying marks.
  • Look for two signatures – Often, it requires the signature of two bank employees.
  • Check for spelling or printing errors – This should go without saying, but it may have spelling or printing errors on it if it’s a poor forgery. Additionally, a forgery likely won’t have watermarks and may have bleeding on the printed portion of the check.
  • Contact the bank directly – If you suspect that something is off, you can always look up the issuing bank’s phone number, call them, and verify the check’s authenticity. If you are incredibly cautious, you may even want to go to the issuing bank and verify that it’s real.
  • Know who you’re dealing with – A homeowner or bank receiving a down payment on a house is going to treat a certified check differently than someone selling a car from Craigslist. If you don’t know the buyer very well, you may want to go through the extra steps to ensure that you’re not being ripped off.

The Consequences of Depositing a Fake Certified Check

If it’s fraudulent, and you accept it and deposit it, you may be held liable for the entire amount of the check. So, it’s a good idea to authenticate the check if you’re unsure or if you don’t personally know the issuer. It’s always better to be safe than sorry.

Bottom Line

Certified checks can keep the issuer and the receiver safe from mistakes and fraudulent activity. In addition, it’s a convenient way to pay for large items such as cars, boats, or even a down payment on a house.

They provide a much simpler process and, for many reasons, a much better option than carrying around large amounts of cash.

As with any transaction, you have to be smart about it. If you’re the receiver, verify that it’s authentic.

If you are drawing a certified check from your account, please ensure that you don’t lose the check. Certified checks can be helpful in certain situations. However, you need to be strategic and proceed with caution, as with any financial matter.

Lauren Ward
Meet the author

Lauren is a personal finance writer who strives to equip readers with the knowledge to achieve their financial objectives. She has over a decade of experience and a Bachelor's degree in Japanese from Georgetown University.