When Do I Need to Use Certified Checks?


Although the world is headed toward electronic banking, there may still be an occasion when you need to complete a paper check or you may be required to provide a certified check. Because not everyone is familiar with the banking services more popular in the past, it is important to have a refresher course on viable ways to pay for things that may be outside of the norm.

More trust in certified checks

Certified checks offer a level of assurance that isn’t found with personal checks (those written from you checkbook).

Once the bank issues the certified check to you, the amount of money will be held on your account, meaning you cannot touch the funds. By holding your money, the bank can guarantee the funds will be available to the recipient. You may show a bank balance of $2,000 but the $500 held on the certified check will only permit you to touch $1,500.

And, you physically need to go to the bank and request a certified check. The bank teller will create the check you need that includes the name of the person who will receive the check and the amount of the check. You will also be required to sign the certified checks when it is complete. Some banks charge a fee to issue certified checks.

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