Certified Checks

• A certified check is written by the account holder. When a certified check is written, the bank guarantees that there are sufficient funds in the account to cover the check. A bank employee checks the account for sufficient funds, sets them aside, and stamps the check, certifying that the funds are available.
  
  

Bank Drafts

• A bank draft is written by the bank indicating that the bank stands behind the check. The bank is authorizing another bank to take funds from its account and give them to the payee.
  
  

Fees

• Banks usually always charge fees for certified checks and may charge fees for bank drafts. Typically, certified checks are more costly because the bank is assuming liability for the funds drawn on a personal or privately owned account.
  
  

Other Considerations

• Since a certified check guarantees payment, it is not possible to stop payment on a certified check, whereas payment can be stopped on a bank draft if the draft is fraudulent. Both certified checks and bank drafts provide protection against insufficiently funded accounts and are commonly requested by the payee.