# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Certified Check

Written By
Paul Tracy
Updated January 16, 2021

What is a Certified Check?

A certified check is a check for which the issuing bank guarantees payment.

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.

Ask an Expert about Certified Check
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Certified Check.
Be the first to ask a question

If you have a question about Certified Check, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Certified Check, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Certified Check

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms