What is a certified check?

A certified check is a check that has been verified and guaranteed by a bank. When a bank certifies a check, it means that the bank has confirmed that the account holder has sufficient funds to cover the amount of the check, and it sets those funds aside for payment. This certification provides reassurance to the payee that the funds are available and that the check will not bounce, making it a secure form of payment.

In contrast, a personal check is simply written against an individual's bank account and does not carry any guarantee from the bank regarding the availability of funds. A check that is issued by the bank but not guaranteed does not have the same level of certainty associated with it, as it may be a standard check without the verification that funds are on hold. A pre-paid check refers to a check where funds have been deposited in advance, but it does not include the certification of funds like a certified check does.