How Do You Get a Certified Check?
What is a certified check? If your company decides to accept certified checks from customers, they might ask buyers to use a certified check, cashier’s check, or money order to make sure the funds are available for the transaction.
As we proceed you will get the details of all you need to know about a certified check and how it compares to other means of payment.
And also how you can actually get one, why you need it, and how much it costs.
What is a Certified Check?
A certified check is a check that has been verified by the bank that the funds are drawn on as “good.”
An officer of the bank certifies that the check writer had sufficient funds available and that the signature is genuine.
As a result, anybody accepting the check can be confident that the check will not bounce or be returned, assuming the check is legitimate and still valid.
It will also have the words “certified” or “accepted” printed somewhere on the check and it’s signed by your bank.
Certified checks are often used for big purchases, like putting money down on a car.
They’re also useful when you’re buying something expensive from someone you don’t know, especially online.
With it, the seller knows you have the money to pay, giving them peace of mind. Regular checks don’t give that same level of confidence.
How to Get a Certified Check
You can get a certified check through the following steps:
1. Contact your bank or credit union and make sure it offers certified checks.
2. Make sure you have the funds needed to cover a certified check in your bank account.
3. Walk into a local bank branch and ask a customer service representative to help you properly fill it out.
4. Be prepared to show your personal ID or driver’s license. Your financial institution will likely require you to do so.
5. Pay the fee required to issue (usually about $5-to- to $25, depending on your bank, credit unions offer the lowest fees for certified checks.)
6. Hang on to the receipt until the check clears and the money officially changes hands.
On average, certified checks will clear quickly; usually, the next business day after the check is deposited by the recipient.
If your certified checks are for more than $5,000, most banks require that the first $5,000 of any certified checks must be made available to the recipient the day after the check is deposited.
The remainder must clear within two business days, in most cases.
How Do Certified Checks and Cashier’s Checks Differ?
Certified checks are personal checks from an account that’s certified by a bank, according to the OCC.
It indicates that a bank has verified a customer’s signature and that it certifies that the appropriate amount of money is on deposit.
A signature, stamp, or some kind of marking shows the check is certified.
A cashier’s check is when a bank withdraws available cash from your account and issues an official bank check from the bank made out to a certain person or business.
That money is guaranteed by the bank using its funds.
This is not a personal check. You can find cashier’s checks at banks such as Capital One, which offers the service for a $20 fee.
Why the Need for A Certified Check?
They are especially useful in larger financial transactions where the possibility of using cash is too risky. And where a regular personal check may not prove reliable enough for the payment recipient.
In that regard, certified checks can eliminate the risk of non-payment and satisfy the needs of both the payer and the recipient.
Certified checks are often used on large transactions and are usually for the following transactions:
1. The purchase of a home or vehicle, where an exchange of title is required.
2. Payment for a home or apartment rental (especially if a previous check has bounced.)
3. Payment for the purchase of a business, where again, a large sum of money is likely involved.
How Much Does a Certified Check Cost?
Getting a certified check can be pricier compared to other payment methods.
While writing a personal check might only cost a few cents, a certified check can set you back $15 to $20.
And not all banks offer certified checks. Many stick to cashier’s checks or money orders instead. Even some big banks might not have them available.
So, if you need an official check, it’s best to check with your bank first to see what options they have.
A certified check is the most secure way to pay for things.
It’s a check where the bank guarantees the money, so the person you’re paying knows it’s legit.
Even if you’re buying a car or closing on a house, using it adds an extra layer of trust and security to the transaction.