What is the Difference Between a Cashier's Check, a Money Order and Certified Check?
by Mary Beth Guard
Question: What is the difference between a cashier's check, a money order and certified check? What are their functions?
Answer: Certified checks are rarely used in today's banking world. They formerly signified that a bank was certifying that the funds represented by the customer's check were actually in the account. They are so uncommon that I've had a handful of bankers call me over the last ten years asking about the procedure for creating a certified check! They had never had the occasion to certify one before.
A cashier's check is a check drawn by a bank on an account maintained at the same bank.
A money order can be a one-shot checking account, or can be the equivalent of a cashier's check, depending on how it is made up, who the drawer is, what it is drawn on.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.