How do i cash a bankers draft?
A document similar to a cheque but drawn on the bank (or building society ) itself against a cash deposit. A bankers draft is thought of as being a secure way of receiving money where the payer’s own cheque might not be honoured and where it’s not convenient or desirable to receive cash. Commonly used for large purchases such as homes and cars. It is similar to a cheque except the money has already been debited from your account – giving the payee the satisfaction that payment is guaranteed. You must give notice to the bank that you require a banker’s draft (usually 24 hours) so that they can prepare the draft and check that you have enough money in your account. There may also be a small fee to pay for issuing a banker’s draft. On picking up the bankers draft from your bank, the amount is immediately debited from your account. When the creditor deposits the banker’s draft in their account, they will be credited the stated amount (which has already been debited from your bank account).
