Certified funds are monies that are guaranteed by the bank. When a bank issues certified funds, the monies are already taken from the customer's bank account and are guaranteed to be available to the creditor, according to About.com.Know More
According to Select CD Rates, a bank can disperse certified funds as a certified check, cashier's check, money order or wire transfer. In each of these instances, the funds must be immediately available and given to the bank before the bank can issue the certified funds payment.
The Missouri Department of Insurance explains that a certified funds payment may be required for some large purchases, such as the down payment for purchasing a home, as a method of guarantee of funds for the seller.Learn more about Personal Banking
A dishonored check is defined as a check that has been presented to a banking institution for payment and has been returned to the depositor due to insufficient funds. Dishonored checks are also referred to as bounced checks or returned checks.Full Answer >
Encumbered funds are monies that are intentionally set aside to pay for future obligated or planned expenses, according to the Business Dictionary. Although encumbered funds are not released until the payment for the future expenses is due, the funds cannot be used for anything other than their specified purposes, according to the State of New York's Office of the State Comptroller.Full Answer >
One can buy mutual funds through an employer's 401(k) plan menu, from the fund companies directly, through a "supermarket" that offers funds from many providers or through a human broker or financial planner, according to the Wall Street Journal. Examples of mutual fund companies include Vanguard and Fidelity.Full Answer >
SMS payments may be used to pay for digital goods and services, merchandise in retails stores and to transfer funds from one bank account to another individual or a business account. According to Mobile Transaction, as of 2013, the use of mobile phones to make SMS payments is growing rapidly among businesses and consumers.Full Answer >