What is referred to as a personal check that is certified by the financial institution ensuring sufficient funds are available?

A certified check is a personal check that has been verified by the issuing bank, ensuring that the account holder has sufficient funds available to cover the amount written on the check. This verification process provides additional security to the payee, as the bank guarantees that the funds are available, reducing the risk of a bounced check. Once the check is certified, it is marked by the bank, typically with a stamp or signature, confirming that it is legitimate and can be cashed or deposited. This feature makes certified checks a reliable form of payment in transactions where the seller needs assurance that they will receive the funds.

In contrast, a demand draft is a financial instrument that instructs a bank to pay a specific amount of money to the named payee, typically used in commercial transactions. Bank acceptances are time drafts that involve a promise by a bank to pay a certain amount at a future date, often used in international trade. A time draft is a written order to pay a specified amount at a future date, which differs from a certified check that requires immediate payment assurance.