In practical terms, particular for the individual who is holding the check, there is really no difference between cashier’s checks and certified checks. However, that doesn’t mean there are not any differences between these types of checks whatsoever. There are a number of differences between a cashier’s check and certified check that you will want to note.
At the same time, it’s not a bad idea by any means to first understand what a cashier’s check actually is. From there, you can then compare the definition of a cashier’s check to the definition of a certified check. In doing so, a number of differences will make themselves obvious to you.
What Is A Certified Check?
In the end, it’s important to understand that the bank remains liable to the definitive owner and the unchanged amount, regardless of whether it is a certified check or cashier’s check. However, there are still several differences between these things that are worth keeping in mind.
With certified checks, you’re talking about something that refers to checks drawn from the accounts of bank depositors, who are the drawers of the checks. The drawers sign these checks. Upon completion of the signature, the bank will then be presented with the check. The bank will then be responsible for certifying these checks. Once the bank has certified that the funds needed to support the check are sufficient, the money will be taken out. Both the banks and the drawers are going to be considered responsible for the unchanged amounts on these checks.
If the check is certified, funds will be transferred by the bank from the account of the depositor to a certified funds account. The money in question will stay in this different account, with the depositor unable to get to the money, until such time as the bank essentially pays for the check. Certified checks are marked by the banks, in order to override account numbers. This is also done to make certain that the money has already been moved to the account of the depositor.
What Is A Cashier’s Check?
When it comes to something like a cashier’s check, one of the first things you will want to note is the fact that a cashier’s check consists of money drawn by banks against their own financial resources. When you’re dealing with checks like these, you’re also dealing with the bank being made to fulfil the obligation to fund the unaltered amount of the check from their own resources.
What does all of this mean? It means that when a cashier check is drawn, the bank is going to cover the amount from their own funds. You can often see these checks issued upon the agreement to administer loans or mortgages. If you are a customer at a bank, you can purchase these checks by agreeing to cover the amount on the check for the bank. In many cases, bank fees are also attached to agreements such as these.
With all of this information in place, you can begin to look to the differences between these types of checks. No doubt, you have noticed a number of differences between these check types on your own, but the differences between these financial entities are still worth making clear.
What Are The Differences Between Cashier’s Checks And Certified Checks
Obviously, at the end of the day, these checks are going to accomplish the same end result. They will be used to establish both a paper trail and proper funding for a project or goal of some kind. However, there are still several notable differences between the two. You certainly want to be aware of these differences, in terms of deciding which type of check might be ideal for you under a specific set of circumstances.
While both certified checks and cashier’s checks represent financial obligations, you want to keep in mind the main difference comes down to where the money is coming from. In terms of certified checks, you have something that is signed by the customer of the bank, which will then be drawn from the actual account of that customer. The cashier check will utilize a wholly different journey. It’s not only going to come from the bank, but it’s going to be signed by that bank, as well.
Contrary to popular-held notions, it is possible for banks to stop payments on both cashier’s checks and certified checks. However, it is also important to keep in mind that this generally only ever happens under special circumstances.
In the end, the cashier’s check is perhaps the more secure of the two. In fact, the cashier’s check has significantly replaced the certified check in a great many financial transactions/situations. Forgeries and disputes with cashier’s checks are considerably more difficult to come by, for one thing.
