When you are waiting for a big payment (such as when you are selling a home) you may want to ask yourself what the best and safest way to receive said payment. Likewise, the same questions may arise if you need to make a large payment to a person or business.
Putting a large sum of money down on an important purchase can be daunting; knowing the least risky way to pay for your largest transactions will make the process go much smoother. While most people pull out the ole checkbook, is that's not always the best option.
It may be easy to write a personal check, but for large payments such as closing on a home, it may be wise to look into using another form of payment (the reason being that personal checks pose some risk for fraud).
A Certified check or cashier's check is a safer and easier choice when there is a large amount of money being distributed. If you use or require your buyer to give you one of these in a large transaction, the risks of something going wrong in the purchase process are far slimmer.
Is there a difference between a cashier's check and a certified check?- We know that it is absolutely a good idea to use either a cashier's or certified check for large purchases such as buying your first home. But what is the difference between the two? They are both similar but one may offer a little more security than the other. If you are planning on making a big purchase or receiving Our article will give you everything you need to know about cashier’s and certified checks.
Certified VS. Cashier's Check- It is important that you learn the basics of each check before receiving or making a large purchase. That way, you will know which option is right for your situation.
When making the decision, it all depends on the level of simplicity and safety that you want in your transaction. A cashier’s check is going to be not only easier but safer. But they are both good options.
Let’s look into this more and I can explain further the differences between the two.
Cashier’s checks are secure because they are a type of check which is guaranteed and signed by the bank. The money written on the cashier’s check is taken out of the bank after the buyer purchases the cashier's check and hands it to the seller. Because the money flow is coming from the bank (and because the check is signed by the bank), a cashier's check is more secure and less restrictive than a certified check.
A certified check is one that is signed directly by the customer of the bank and then certified by the bank. The bank certifies the check by ensuring that the customer has enough money in his/her account for the check to be cleared and that the signature is real. Most of the time the bank will approve these checks.
While a certified check is still pretty secure, there is no guarantee that the customer won’t use the funds available for the check to clear before the receiver of the check can cash it. They could easily sign a check for thousands of dollars and then go make another purchase somewhere else.
Unfortunately like most forms of payment, cashier’s and certified checks are susceptible to fraud, make sure to always check to ensure your check isn’t fraudulent. There are several ways to spot a fraudulent check.
To start, check for red flags on your check such as grammatical errors on the check. You can also call your bank to verify the check is real. Simply call your bank and provide the check’s number and name of the purchaser.
Make sure to CALL YOUR BANK. Don’t call the number of the bank on the check as that could be phony as well. Scammers will often put fake numbers that aren't actually tied to a real bank.
Both cashier’s and certified checks are a good option when making a big purchase.
However, a cashier’s check is VERY safe as it is money given from the bank. The buyer has already given the funds to the bank to give to the seller. Regardless, both options are pretty safe and either one work well when making a big purchase. Just always make sure to look for signs of fraud and also remember that you can call your bank to verify the validity of the check.