I know this is a bit basic, but I cannot understand what a "bankers draft" is. How does it differ from a cheque in the name of the bank? How do you get a bank draft - just pay the bank cash? And does it have to be in a bank where you have an account?
Thanks.
In message , BigMomma writes
It has insufficient parties to be a cheque, because the drawer and the drawee are the same, but for all intents and purposes, with the exception of s60 of the Bills of Exchange Act, you could regard it as being a cheque.
Not these days, Money Laundering Rules would make it ridiculously difficult.
Usually.
......................................................................................................... Bankers drafts are drawn on a Bank's head office whereby a bankers cheque is drawn on a bank branch.To a customer there is no difference. Drafts are usually for large amounts over 25k or so anything below normally gets you a bank cheque, but of course each bank will have its own way of doing things. Normally these days (because of money laundering rules) you have to bank with that bank to get a draft/cheque and the transaction will have to go through your account ie if you turn up with cash they will pay that into your account and then debit it again to pay for the draft. Eric
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Thanks guys. In this case it is for a deposit for a flat for 1.2K. They say either a bankers draft or a cheque in the name of the bank.
Out of interest I have a few queries.
a) How does the reciever deal with a draft. With a cheque in the name of the bank, they just pay it into an account, but what about the draft? b) How do you get a draft in the bank. Just go to the information desk? c) If you came in with say 3K cash and wanted a draft what would the bank do? d) Does the draft have to be made payable to someone like a cheque or could it be blank? e) How long does a draft take to clear. I understand that a bank cheque is cleared as per usual only is seen as more reliable.
A simplistic view of Bankers Drafts based on the times I have used them.. it maybe wrong.. but its my understanding.
If you write a cheque the payee does not know if you have the funds in your account to cover the amount.. usually thousands, so a cheque card is not much use!
With a bankers draft, you go to the bank and ask for one. They check if you have the funds, and take the amount from your account. In turn they give you the banker draft. What this means is the bank is guaranteeing to pay the cheque not you.
For a payee, having a bankers draft which is guaranteed by HSBC, Natwest or what ever bank means they are more certain of being able to cash it (compared to an unknown individual writing a cheque).
Thats all it means.. you you the drawer pay the bank for the "priviledge"
About 10 IIRC.
Rob Graham
Exactly the same. Just pay it in as if it was a cheque.
Yes, or possibly phone up in advance.
You pay the money into your account, and once it is cleared, you can get a draft.
It probably has to be paid to someone. It would certainly be a good idea. A draft payable to bearer would be like carrying a £3,000 bank note in your pocket.
Probably the same, but they are more likely to let you draw on the funds immediately.
It's when you're conscripted to work in a bank. The conditions are awful and you don't last long.
Except that if it's cash, it does not need to be cleared. But the Bank may ask questions about its source (and need to be satisfied with the answers) under their money laundering rules.
I recently phoned Lloyds about setting up an overdraft on my current account. I was told go see a branch, and to bring my passport and a utility bill. Now, I can appreciate the need for anti money laundering procedures, but surely this seems like a bit of an overkill?
Also, the other day I set up a postal ISA with Abbey, and despite having another account with them they also required me to come to a branch with my passport.
Surely somewhere there is a trade-off between inconvenience to their customers and compliance with anti money laundering legislation? Presumably what they REALLY are after is the big fish?
Thomas
In message , Thomas S Skogvold writes
The problem is that with RBS getting a hefty fine for using common sense, no other institution is going to take the risk.
The joint committee that has agreed the banks procedures is now making overtures to the government to tone things down a bit. Lets hope they are succesful.
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