What type of check is bought from a bank with payment guaranteed by the bank?

A cashier's check is a type of check that is purchased from a bank and backed by the bank's funds, making it a guaranteed form of payment. When a customer requests a cashier's check, the bank will withdraw the desired amount from the customer’s account and then issue a check that is drawn on the bank's own funds. This ensures that the check will not bounce due to insufficient funds, as the bank has already secured the amount.

Because of this guarantee, cashier's checks are often used in larger transactions where the recipient requires assurance that the payment will be honored. They are considered more secure than personal checks, which are reliant on the payer's account balance, and provide greater confidence to the payee about the validity of the payment.

In contrast, a certified check involves a bank verifying that a personal check has enough funds to cover the amount before certifying it; while a personal check is merely drawn from the person's account and can potentially bounce if there are insufficient funds. Money orders, although also considered secure forms of payment, are typically issued by a variety of institutions, not just banks, and have a limit on the amount that can be conveyed.