Although certified checks are similar to cashier’s checks, they are different. The difference comes from where the funds are held. With a certified check, funds remain in the user’s account, but with a cashier’s check, funds are moved into the bank’s account. Both can be used for large purchases and are considered more secure than regular checks because funds are verified before the check can be deposited or cashed. Cashier’s checks may also require a service fee.
Sometimes the terms “cashier’s check” and “money order” are used interchangeably but there is a difference. A cashier’s check is issued by a bank or credit union and a money order can be purchased at retail stores, post offices, check cashing businesses, banks and credit unions. Cashier’s checks may be made for large amounts of money and money orders are limited to $1,000 or less, depending on where they are purchased.