When you need to make a secure payment, certified checks are a popular and trusted option. A certified check is essentially a check that's been guaranteed by the bank, which ensures there are enough funds in your account and the signature is authentic.

In other words, a certified check can be a reliable choice for large transactions or situations where the recipient needs extra assurance that the payment is solid. Read more about how certified checks work, how much they cost, and when you need to use one.

What is a certified check, and how does it work?

A certified check is similar to a personal check but more secure because the funds are guaranteed by your bank.

When you write a personal check, you indicate the amount of the payment and endorse the check with your signature. You then give the check to the intended recipient, and they can cash it in. Say, for example, you give a personal check to somebody for $1,000. While that person might feel like they’re a thousand dollars richer, they won’t actually have any money until the check clears and $1,000 leaves your bank account.

Technically, you could write a personal check for $1,000 but have nothing in your bank account. Of course, you wouldn’t want to do that. For one, you could wind up with a non-sufficient funds fee. Plus, the recipient of the check wouldn’t receive their money. And intentionally writing a bad check is a crime, ranging from a misdemeanor to a felony, depending on the circumstances.

If you hand somebody a certified check for $1,000, however, your bank guarantees the funds are available. It will freeze that amount of money in your account until the certified check is cashed. This provides peace of mind to the recipient that they’ll get paid.

Read more: How to order checks online

When is a certified check required?

So why might you need to use a certified check? You could in several scenarios.

For example, if you’re making a large purchase (like a down payment on a car), you might be asked to use a certified check. Or maybe you slipped up in the past and accidentally wrote a bad check to your landlord or service provider. In the future, they may require you to pay with a certified check to ensure the issue doesn’t happen again.

As a general rule, any time you aren’t paying for something with cash, a debit card, or a credit card, and there are some high stakes involved (a lot of money, a lack of trust between parties), you could be asked to furnish a certified check. However, in some cases, a cashier’s check may be preferred, so be sure to double check.

Benefits of a certified check

Getting a certified check usually requires that you visit a bank branch in person, which can be a bit of a hassle. Even so, there can be benefits to using a certified check for everybody involved, including:

• Peace of mind: The person you’re paying knows they will get their payment in full, and you don’t have to worry that the funds won’t be available, which could happen with a personal check.

• Faster outcome: Because the funds are guaranteed, you may receive whatever product or service you need faster than if you paid with a personal check.

• Safer transaction: If your certified check is lost or stolen, it could be a hassle to replace. Still, you’re far more likely to get a certified cash replaced by your bank than missing cash.

Do certified checks come with fees?

You may be able to get a certified check through your bank. However, not all financial institutions offer them. If your bank doesn’t provide certified checks, you’ll need to use an alternative (like a cashier’s check or money order) or consider opening an account with a bank that does.

Although personal checks are free or just a few cents each, a certified check will likely cost you closer to $15-$20.

Certified check vs. cashier’s check

Certified checks are easy to mix up with cashier’s checks since they have similar names. However, they’re not quite the same thing.

A cashier’s check is similar to a certified check. However, the main difference is that a cashier’s check is issued by the bank directly rather than drawn from your personal account. When you request a cashier’s check, the bank withdraws that money from your account immediately and transfers the funds to its own account. The bank then issues a check for that same amount and it’s signed by a bank official.

Overall, while both forms of checks are secure, a cashier's check provides an even higher level of security.