Certified checks aren't used often these days, but you might need one to make a large purchase
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- A certified check is a check that's been reviewed at a bank to ensure it won't bounce.
- You'll need to go to a brick-and-mortar bank to get a certified check, and usually there's a fee.
- You can often use a money order, cashier's check, or wire transfer instead of a certified check.
If you need to give someone a personal check but they need a little more assurance that the check is good, a certified check should do the trick. While they are not all that common, certified checks are a way to show guaranteed funds for a purchase, such as at an auction.
If you're interested in giving or receiving secured funds, here's what you need to know about certified checks.
What is a certified check?
A certified check is a personal check that's gone through an extra step to prove the funds are somewhat guaranteed by the bank. Certified checks have been reviewed by the bank to ensure funds are available for the check.
Certification tells the receiver that the bank has reviewed the account and that the check won't bounce. Funds are effectively earmarked for that specific check once certified.
If paying with cash isn't practical, online or wire payments are not available, and you don't want to use a cashier's check or money order, a certified check can be a practical way to handle a large purchase, like a car.
Where to get a certified bank check
Certified checks are available through some banks and credit unions. To get a certified check, take your checkbook to your bank and let them know you want a certified check. If available, be prepared to pay a fee of around $10 to $20.
Not all banks offer certified check services. If you have an online bank account, for example, certified checks likely are not available. But even many traditional brick-and-mortar banks have stopped offering certified checks, as they are not very popular with most banking customers.
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When to use a certified check
Certified checks, like other forms of guaranteed funds, are ideal in situations where the buyer and seller don't know each other. This offers both parties some level of protection, but namely the seller from a bounced check.
Certified checks are more secure than a personal check but don't offer the same level of buyer protection as cashier's checks or money orders. For very large purchases, wire transfers might be the best way to send funds, as they offer same-day funding and allow funds to go directly to the seller's account.
Auctioneers often accept certified checks, as they may be a good way to bring funds for a large purchase when you don't know the exact amount. You can make out a certified check to yourself and sign it over to the seller if you win the auction. If you don't win, you can just redeposit the funds in your checking account.
How to avoid fraud with certified bank checks
Scammers may use fake checks or steal other people's information to commit financial fraud. If you are unsure whether a certified check is legitimate, you can call the bank that issued the certified check to verify whether it's real.
If you have received a fake check, you'll have to reach out to the person who wrote the check to receive another form of payment. You may also report fraud to the Federal Trade Commission.
Certified check alternatives
If your bank doesn't offer certified checks, you have a few other good options available for secure payments. Consider these alternatives to certified checks:
- Credit cards: Credit cards are the safest way to pay as a buyer. Many cards include valuable purchase protections and the ability to dispute transactions where the seller didn't come through as promised. Credit cards are free for the buyer but cost up to around 3% in fees for the seller.
- Cash: Good old-fashioned cash doesn't have any added security, but there's no debating its value for any purchase. It's free to use cash.
- Money orders: Money orders are a step up from certified checks. They are backed by large companies like Western Union and MoneyGram and are considered guaranteed funds. They are generally cheaper than certified checks and available for up to $1,000 each and cost up to around $5 each.
- Cashier's checks: A cashier's check is a check from a bank. That's the best kind of guaranteed check there is. Cashier's checks cost more than money orders. Unlike certified checks, they are available from nearly any bank or credit union. Cashier's checks often cost around $10 to $20 each.
- Online payments: Online payments using apps like Venmo or Cash App are instant and secure. Zelle also offers near-instant payments to other bank accounts in the Zelle network. These payments are typically free for both parties.
- Bank wires: Wires are one of the safest ways to make a large purchase and are common in real estate and other industries. Wire transfers generally process the same day but cost anywhere from $0 to $45 each.
Certified checks are not a common payment method
Certified checks are not used often these days. Most people would opt for money orders or cashier's checks as a safer and often cheaper alternative.
But if you do need to use a certified check, you can head to your bank or credit union to get started, if that's a service they offer. Otherwise, an alternative may be the best way to handle your payment needs.