What Is a Certified Bank Check?

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A certified bank check is a guaranteed check from a bank where the bank agrees to pay, as opposed to the seller agreeing to pay. Require certified bank checks when selling things to a stranger with advice from a financial consultant in this free video on certified checks.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Have you ever bought a house or bought a car and the seller asks you to provide a certified check? Hi this is Roger Groh with Groh Asset Management. Today we're here to talk about certified checks and what they are. If you are selling something to somebody else and are somewhat concerned about whether you're going to be paid, well you can request the buyer to give you a certified check. What that is is a guaranteed check from a bank where the bank is agreeing to pay you. It's not the seller, it's the bank that's agreeing to pay you. Now somebody is gone to the bank and made arrangements with the bank to pay them but you don't care because you have Bank of America or CitiBank or HSBC or any one of the other major banks guaranteeing to pay you out of their own funds upon deposit of that check. It's pretty straightforward. Now there are fees associated with any certified checks. On the other hand when you cash those checks, because they are looked at as cash, your account should be credited quicker and therefore interest should be begin accruing on that cash quicker then it would be in a personal check. Hope that helps, I'm Roger Groh with Groh Asset and thank you very much for spending time with me.

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