Certified Check

• A certified check is drawn on the account of the bank depositor who is the "drawer" of the check. The drawer signs the check. The check is then presented to the bank for certification. The bank "certifies" that there are sufficient funds to pay the check. Both the bank and the drawer are liable for the unaltered amount of the check.
  
  

Cashier's Check

• A cashier's check is drawn by the bank against its own funds. The bank is obligated to pay the unaltered amount of a cashier's check to the holder out of its own funds.
  
  

Source of Funds for a Certified Check

• When a check is certified, the bank moves the funds out of the depositor's account and into a certified funds account. The funds will remain in this segregated account, out of the reach of the depositor, until the check is paid by the bank. The bank will mark a certified check to override the account number and to indicate that the funds have already been moved from the depositor's account.
  
  

Source of Funds for a Cashier's Check

• A cashier's check is drawn on the bank's own account. For example, a bank may pay the proceeds of a loan or mortgage in the form of a cashier's check. A bank customer may purchases a cashier's check by paying to the bank the amount of the check, plus a bank fee.
  
  

Relationship between the Bank and the Holder of the Check

• Certified checks and cashier's checks are both obligations of the bank to pay the unaltered amount to the holder of the check. The difference is that a certified check is signed by the bank's customer and drawn on the customer's account. A cashier's check is signed by the bank and drawn on the bank's account. Contrary to common belief, a bank may, under certain circumstances, stop payment on either a cashier's check or a certified check.