BANKING AFFAIRS

Detailed explanation-1: -With a certified check, the recipient knows that the bank has verified the check, signature, and availability of funds. It’s a source of guaranteed funds. The process of certifying a check verifies: The person writing the check has the authority to write checks on that account.

Detailed explanation-2: -Cashier’s checks are official checks that a bank or credit union guarantees, often for a fee. As with personal checks, you can use cashier’s checks to pay bills, make purchases or pay other debts owed. But there are situations when it’s better to use a cashier’s check to send or receive payments.

Detailed explanation-3: -With a cashier check, the bank itself guarantees the funds from the bank’s own account rather than your personal account. Since the bank stands behind the check, it is a safer form of payment than one coming from a personal bank account.

Detailed explanation-4: -Key Takeaways. Both cashier’s checks and certified checks are official checks that are guaranteed by a bank. Compared to personal checks, cashier’s checks and certified checks are generally viewed as more secure and less susceptible to fraud.