What is a certified check?
The certified checks are utilized for bigger money transactions, not every transaction is big enough. Moreover, they are specifically designed for big and crucial transactions: making the down payment for a new house. Many individuals mix the conditions of cashier’s checks with certified checks. Besides, there are many differences.
What is the working nature of Certified Checks?
If you are given the certified check, this states that the check writer has visited the bank branch in person. Moreover, the bank employee verifies the person owned the account and had enough funds for covering the check.
Once verified that the check is fine, the bank specifically places the stamp and signs it. Also, they may not know the conditions of the certification, such as the time duration when it is valid, which is often 60 or 90 days. During this time, the bank will prevent the check writer from utilizing the money that funded the check. In addition, if you deposit the certified check, you will get access to an initial $4,000 of the deposit the next day.
Getting the personal certified check, there is no way for you to know whether the check writer has the required funds in the bank account for covering the payment. The check writer will spend it before you can deposit or cash the check. As an outcome, you won’t get paid. You have to pay the fees for a bad check deposit. Besides, the certified check ignores the issues.
There is another option for the certified check is the cashier’s check. A cashier’s check is similar to a certified check. Considering the bank, they may be easy to get when you have to make payments with certified funds.
Choosing the certified check, you are the one writing the check. The bank certifies that there is required cash in the account for covering it. Moreover, the funds come from the account when the check is deposited or cashed.
Having the cashier’s check, you pay the bank by offering cash or having the funds transferred out of the account. Moreover, the bank then makes the check written to the payee. When the check is paid out, the money comes from the bank account, not the one you own. For both certified and cashier’s checks, you need to pay a small fee for the service, depending on the kinds of accounts you have.
For every person getting the payment, there is no big difference between a cashier’s check and a certified check. They are the types of assured funding.
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What are the differences between certified checks and cashier’s checks?
The main difference is what accounts the funds are taken out of. Using the certified check,
- Money will be taken out of the account when your payee cashed it
- The funds are particularly accessible after 1 day’s deposit
- Authorized by 2 bank associates and the account holder to showcase the authenticity.
However, with a cashier’s check.
Talking further, having a cashier’s check
- Money released from the bank account instantly
- Never bounces
- Works similarly to cash
How can one get the cashier’s check?
With the cashier’s check, you get the opportunity to make the check of the particular amount from the bank, and they authorize the check on your behalf. The money you offer the bank directly goes to the bank’s account. They will then issue the check to the payee you request. When the check is cashed the money will come out of the bank’s funds and not the one you own. Cashier’s checks are assured funds, as the bank’s check won’t bounce or be returned.
So, what is a Certified Check Exactly?
The certified check is the check that has been endorsed by the bank considering it great. Determining that the account has the required funds and the signature on the check is valid. When making the purchase, the bank will verify that the person buying the check was the account holder or the authorized person for the said account. The associate will verify if there were enough funds in the account so that the check won’t get returned or bounces back. When someone issues a certified check, the bank verifies a customer’s signature and ensures that the amount of the check is in the account and set aside for that check to clear.
What is the value of the certified check?
In clear words, certified checks are free, if you have an account with the bank you try to buy one. Moreover, few banks may charge a minimal fee considering the kind of account you have. A bank will charge $20 for issuing the certified check. Besides, not like money orders, you can buy certified checks from financial institutions:
There is a risk associated with every financial transaction. Besides, certified checks are one of the ways that scammers will try to get you. Due to the funds being certified, most of the money will get a deposit to the payee account. Moreover, once the bank finds the check is a fraud, whoever made the check deposit will be held accountable for the money.
Why do individuals go for certified checks over personal checks?
The money in the check is an assurance to the financial institution that issues it. Moreover, the funds are present in the bank account of the individual who asks for the check to be made. With the personal check, there is no real assurance. Someone can write a personal check, and not have the funds in their account. Besides, this will make the check bounce. Many financial institutes will charge the bounce fee to your account because you are the one who has attempted a check deposit.
Certified Checks are nothing to be afraid of. This type of check will keep the send and receive securely from scams making sure you know who is sending money and from whom you are getting the money.
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