What is a Certified Check?
How Does a Certified Check Work?
Let's assume you want to rent an apartment from the XYZ Leasing Company but your credit is bad. XYZ Leasing Company may require you to pay with a certified check, meaning that your bank will issue a check to XYZ from your account and guarantee that there will be enough cash in the account to pay XYZ. The bank also guarantees that the signature on the check is yours.
Why Does a Certified Check Matter?
Certified checks are a good way for sellers to feel more secure about the source of buyer's funds because banks issuing certified checks generally lock the amount of the check up to ensure that the depositor does not withdraw the funds and force the check to bounce.
Banks almost always charge fees to issue certified checks and cannot halt the payment of a certified check without the original receipt.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.