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What Is a Certified Cheque in Canada? How It Works and When to Use One

Updated

A certified cheque is a personal cheque that your bank has guaranteed will clear. Unlike a regular personal cheque — which can bounce if you don’t have enough funds — a certified cheque carries your bank’s stamp of assurance that the money is available and set aside.

They are less common than they were 20 years ago (Interac e-Transfer handles most large transfers now), but certified cheques remain the standard for certain high-value transactions, particularly in real estate.


How Certification Works

When you bring a personal cheque to your bank branch for certification, the following happens:

  1. The teller verifies your balance. Your account must have sufficient funds to cover the amount.
  2. The funds are immediately held or debited. The bank sets aside the exact amount of the cheque so it cannot be spent elsewhere. Depending on the bank, the funds are either deducted immediately or placed under a hold.
  3. The bank stamps or endorses the cheque. A bank officer signs it, or a certification stamp is applied, indicating the bank guarantees the payment.
  4. The cheque is returned to you to deliver to the recipient.

The recipient can deposit a certified cheque with confidence — the funds are guaranteed and should be available quickly (often next business day or same day, subject to individual bank policies).


Certified Cheque vs. Bank Draft

These terms are sometimes used interchangeably, but they are distinct products:

Certified ChequeBank Draft
Drawn onYour personal accountThe bank’s own account
GuaranteedYes — by your bankYes — by the bank itself
Required a personal accountYesNo (you pay the bank directly)
Risk of fraudLow (can be forged, rarely)Very low
Typical fee$10–$20$10–$20
Available atBranch (in-person only)Branch (in-person) or sometimes online
Accepted for real estate depositsYesYes (preferred at some offices)

A bank draft (also called a bank money order or teller’s cheque) is issued in the bank’s own name, drawn on the bank’s own funds. Because you are not writing from your personal account, the draft carries slightly more certainty — even if your account is closed, the draft is valid. For this reason, real estate and legal transactions sometimes specifically require a bank draft rather than a certified cheque.


When to Use a Certified Cheque

Real estate deposits and closing costs

In most provinces, real estate deposits (submitted with an offer to purchase) and balance-of-purchase payments must be in guaranteed funds — either a certified cheque or bank draft. A personal or business cheque is not accepted for these transactions.

Private vehicle sales

When buying a car from a private seller, they may request a certified cheque or bank draft rather than accepting an Interac e-Transfer (especially for large amounts above the e-Transfer limit) or a personal cheque.

Legal settlements and court payments

Courts and lawyers often require guaranteed funds for settlement payments or legal costs.

Landlord deposits in certain provinces

Some landlords (particularly for commercial leases) request a certified cheque for the first and last month’s deposit.

When a personal cheque is not accepted

Any situation where the recipient has reason to doubt a personal cheque will clear — such as a new relationship with a buyer, or a high-value transaction — may call for a certified cheque or bank draft.


How to Get a Certified Cheque

  1. Write a personal cheque for the amount you need, made out to the payee (or leave it payable to yourself if you want to bring it to the bank blank — though most banks prefer it already made out)
  2. Go to your bank branch in person with the cheque and government-issued photo ID
  3. Ask the teller to certify the cheque — explain the amount and payee
  4. Pay the certification fee (typically $10–$20)
  5. Receive the certified cheque with the bank’s stamp or officer signature

You cannot certify a cheque online, by phone, or at an ATM. Certification requires a branch visit.


Certified Cheque Fees by Bank (2026)

BankCertified Cheque Fee
RBC$15–$20
TD$15–$20
BMO$15–$20
Scotiabank$15–$20
CIBC$15–$20
National Bank$15–$20

Fees vary by account type and package — some premium accounts include a limited number of certified cheques per year at no extra cost. Confirm current pricing with your branch.


Alternatives to Certified Cheques in Canada

Interac e-Transfer is the most common modern alternative for amounts up to $3,000 (standard limit) or up to $25,000+ with enhanced limits offered by some banks. e-Transfers are immediate, cannot bounce, and cost $1–$1.50 at most banks. They are not accepted for real estate closings (where guaranteed funds documentation is required), but are widely used for everything else.

Wire transfer is available for very large amounts or international payments where e-Transfer is not an option.

Bank draft is the highest-certainty paper payment and is slightly preferred over certified cheques in real estate and legal contexts.