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Home >> Checks/Money Orders
Are Certified Checks Guaranteed?
I keep several certified checks purchased from my bank. Are they guaranteed? If so, by whom? Are my IRAs with financial institutions or an investment firm guaranteed?
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 Whether you have some of your own checks that you have had certified or have purchased bank official checks (cashier's checks), they are covered as deposits by the FDIC. Add those checks up, plus any individually-owned deposit accounts at the same bank, and the total will be insured to the FDIC's $250,000 limit. If you have an interest in IRA or other self-directed retirement accounts at that bank, your total interest in such accounts will be separately insured up to $250,000.
Funds you have in IRAs are also insured by the FDIC if invested in bank deposits such as certificates of deposit. If they are not in that form, they are most probably insured by the Securities Investor Protection Corporation (SIPC), which provides protection for investors if a brokerage fails.
Note: This page has been updated to reflect the temporary increase in deposit insurance limits. The "standard maximum deposit insurance amount" on FDIC and NCUSIF deposit coverage was increased to $250,000 beginning on 10/3/08. It will revert to $100,000 after 12/31/2013.
Published on BankingQuestions.com 9/24/08; updated 6/16/09
Updated 10/08/08
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