What is a banker’s draft?
You usually need to give your bank 24 hours notice to prepare a banker’s draft and they will probably charge for the service.
A banker’s draft is otherwise called bank draft or banker’s cheque, is a process of instructing your financial institution to write a cheque for you by giving them details that will be included in your request and you give them your money and they give you a banker’s cheque for that amount to give to the person you’re paying.
Banker’ cheque does not bounce or get dishonored because of a lack of funds.
How long does a banker’s draft take to clear?
The money on banker’s draft is accessible four days after it’s been paid in.
However, you won’t be sure it’s cleared the money is really yours until six working days after it’s been paid it in.
If you spend the money in the meantime, you might have to pay it back.
How to raise a banker cheque.
- Write the name of the person or organization you’re paying.
- Draw a line through any blank spaces on the cheque so people can’t add extra numbers or names.
- Add details (such as a reference or account number) to the payee line. …
- Keep the cheque stub that contains the details and reference. When should you use one?
Banker’s drafts are often used for larger amounts and when people or organizations won’t accept a personal cheque. There are a number of ways to transfer money to and from your bank account which can be faster and safer than using a banker’s draft.