Side-by-Side Comparison
| Feature | Certified Cheque | Bank Draft | Money Order |
|---|---|---|---|
| Issued by | Your account (bank certifies) | The bank’s account | Canada Post, bank, or retailer |
| Maximum amount | No limit | No limit | $999.99 |
| Cost | $10–$25 | $7.50–$10 | $7.50 |
| Guaranteed funds | Yes (certified) | Yes (bank’s own funds) | Yes (pre-paid) |
| Security level | High | Highest | Moderate |
| Can be cancelled | Yes (by account holder, with conditions) | Yes (with original receipt) | Yes (with receipt) |
| Needs bank account | Yes | Yes | No (can buy with cash) |
| Where to get | Bank branch | Bank branch | Canada Post, banks, Western Union |
| Processing time | Same day at branch | Same day at branch | Same day at any outlet |
| Best for | Legal payments, large purchases | Real estate, vehicles, immigration | Rent, bills, small payments |
Costs by Bank
| Bank | Certified Cheque | Bank Draft | Money Order |
|---|---|---|---|
| RBC | $15 | $8.50 | $7.50 |
| TD | $15 (free with All-Inclusive) | $7.50 (free with All-Inclusive) | $7.50 |
| CIBC | $15 | $7.50 | $7.50 |
| BMO | $15 | $7.50 (free with Premium) | $7.50 |
| Scotiabank | $15 | $7.50 | $7.50 |
| National Bank | $12 | $7.50 | $7.50 |
When to Use Each
| Situation | Best Option | Why |
|---|---|---|
| Buying a house (closing) | Bank draft | Most secure; required by lawyers |
| Buying a car (private sale) | Bank draft | Guaranteed funds; no limit |
| Security deposit for rental | Certified cheque or bank draft | Landlord wants guaranteed funds |
| Monthly rent payment | Money order | Affordable; proof of payment |
| Immigration application fee | Bank draft or certified cheque | Often specified in application requirements |
| Sending payment by mail | Money order | Safest for mailed payments |
| Government fees | Certified cheque or money order | Check specific requirements |
| Court-ordered payment | Certified cheque | Often specified by legal process |
| Paying a contractor | Bank draft | Large amount, guaranteed funds |
| Small purchase from private seller | Money order | Under $1,000; easy to get |
How to Get Each Payment Method
Bank Draft
| Step | Details |
|---|---|
| 1 | Visit your bank branch (cannot be done online) |
| 2 | Request a bank draft for the specific amount |
| 3 | Provide the payee’s exact legal name |
| 4 | Funds are immediately withdrawn from your account |
| 5 | Bank issues the draft; keep the receipt |
Certified Cheque
| Step | Details |
|---|---|
| 1 | Write a personal cheque for the exact amount |
| 2 | Bring the cheque to your bank branch |
| 3 | Bank verifies and holds the funds in your account |
| 4 | Bank stamps/certifies the cheque |
| 5 | The certified cheque cannot bounce (funds are guaranteed) |
Money Order
| Step | Details |
|---|---|
| 1 | Go to Canada Post, bank branch, or Western Union |
| 2 | Pay the amount + fee in cash or debit |
| 3 | Fill in the payee’s name |
| 4 | Keep the receipt/stub for your records |
Fraud Protection
| Risk | Certified Cheque | Bank Draft | Money Order |
|---|---|---|---|
| Can be counterfeited | Yes (rare) | Yes (rare) | Yes (more common) |
| How to verify | Call the issuing bank with cheque number | Call the issuing bank with draft number | Call the issuer with serial number |
| Stop payment possible | Yes (small window) | Yes (with original receipt) | Yes (with receipt) |
| Common scam warning | Overpayment scam (buyer sends more, asks for refund) | Same as above | Same as above |