When making significant financial transactions in Canada—such as purchasing a vehicle, putting a down payment on a home, or paying legal fees—merchants and individuals often require guaranteed funds. A certified cheque or a bank draft provides this security, as the Bank of Montreal (BMO) verifies and reserves the money directly from your account before issuing the document. This eliminates the risk of a personal cheque bouncing due to non-sufficient funds (NSF).
While the terms are often used interchangeably, there is a slight distinction in modern banking. Certifying your own personal paper cheque is becoming less common, and BMO now typically issues "Official Cheques" or "Bank Drafts" instead. Both documents serve the exact same legal purpose but come with different fee structures depending on your specific BMO banking plan. Understanding these costs ensures you aren't caught off guard at the teller counter.
BMO Secure Cheque and Draft Costs
| Category | Details |
|---|---|
| Certified Personal Cheque | $20.00 CAD (when requested by the issuer). |
| BMO Bank Draft / Money Order | Typically $7.50 to $10.00 CAD per item. |
| Premium Plan Holders | Free (Fees are fully waived for BMO Premium Plan customers). |
Algorithm: How to Request a Bank Draft or Certified Cheque
- Step 1: Log in to your BMO Mobile Banking app or online portal using your Client ID and password to ensure you have sufficient available funds.
- Step 2: Because guaranteed documents cannot be printed at home, you must visit a physical BMO branch. Use the online Branch Locator to find the nearest location.
- Step 3: Bring two pieces of government-issued identification and your physical BMO debit card to the teller.
- Step 4: Request a bank draft (or a certified cheque, if you brought a personal cheque to be stamped). Provide the exact legal name of the payee and the precise dollar amount.
- Step 5: Review the printed draft for spelling errors before leaving the counter, as the funds are immediately withdrawn from your account.
Pro-Tip: The ultimate efficiency hack for managing large payments is to opt for the Bank Draft rather than paying to certify a personal cheque. Not only is a draft generally cheaper ($7.50 vs. $20.00), but it also prints much faster at the teller station. Furthermore, if you plan on buying a house or making multiple large transactions in a single year, upgrade temporarily to the BMO Premium Plan. Keeping a minimum balance of $6,000 waives the monthly account fee, and all your bank drafts will be issued completely free of charge.
Troubleshooting Guaranteed Payment Issues
- MFA Code Delays: If you are trying to verify your balance on your phone while waiting in line at the branch and your 2-Step Verification code is delayed, check your cellular reception. If the SMS fails, select the option to receive an automated voice call to authenticate your identity.
- Lost Bank Drafts: Unlike a personal cheque, a lost bank draft is treated almost like lost cash. If you lose the document, you must immediately return to the issuing branch, sign an indemnity agreement (which may require a credit check or collateral), and pay a cancellation fee before a replacement can be issued.
- Locked BMO ID: If you enter your digital banking password incorrectly multiple times while attempting to check your funds, your profile will lock. You can resolve this quickly while at the teller counter by providing your photo ID and having the representative manually reset your online access.
Frequently Asked Questions
Can I cancel a BMO certified cheque or bank draft?
Because the funds are guaranteed, canceling a certified cheque or draft is very difficult. If you still have the physical document, you can return it to the branch to have the funds deposited back into your account. If the payee has the document, they must return it to you. You cannot simply place a "stop payment" on it through online banking like you can with a regular cheque.
Do I need an appointment to get a certified cheque?
Generally, no. You can walk into any BMO branch during regular business hours to request a bank draft or certified cheque at the teller counter. However, for exceptionally large amounts (e.g., over $100,000), calling ahead is advisable so the branch manager can ensure a smooth verification process.
