certified check
Definition
Noun: A certified check is a personal check that a bank has verified and guaranteed. The bank confirms that the account holder has enough money in their account to cover the full amount of the check and sets aside those funds. This certification makes the check a secure form of payment, as the bank itself promises to pay the recipient.
Usage
A certified check is used when a payee requires a guaranteed form of payment, eliminating the risk of the check bouncing due to insufficient funds. It is commonly required for large transactions, such as down payments on a house, purchasing a car, or paying security deposits.
Examples
- The landlord required a certified check for the first month's rent and the security deposit.
- To finalize the car purchase, the buyer provided a certified check from her bank.
- The auction house only accepts payment via certified check or wire transfer for high-value items.
Advanced Usage
- As a secure financial instrument: A certified check is considered a "cashier's check" issued against a personal account. The certification process involves the bank stamping or writing "certified" on the check, and often a bank officer's signature. Once certified, the funds are immediately deducted from the payer's account and held by the bank.
Variants and Related Words
- Cashier's Check (Noun): A check issued by a bank, drawn on its own funds, and signed by a cashier. It is similar to a certified check but is a direct obligation of the bank, not a personal check.
- Bank Check (Noun): Another term for a cashier's check or official check drawn by a bank.
- Certify (Verb): To confirm or attest to something in writing, often officially. (e.g., The bank will that the funds are available.)
Synonyms
- Bank-guaranteed check
- Certified bank draft
- Guaranteed check
Antonyms / Contrasting Terms
- Personal Check: A standard check written from an individual's account, with no guarantee of sufficient funds from the bank.
- Bad Check / Bounced Check: A check that is not honored by the bank due to insufficient funds in the account.
Noun
-
a check containing certification that the person who issued the check has sufficient funds on deposit to cover payment
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