Bankers draft

[samuel23]

Does anyone know what the time frame is for drawing from a bankers draft? I was under the impression that these are like cash and once paid in are available funds in an account. My bank is telling me that they are classed as cheques and take the same amount of time to clear. The issuing bank told me they are a guarantee that the funds are there (unlike a cheque) and therefore should be available funds in 24 hrs unless paid in after 16:00 on a Thursday, when the funds are then not available until 09:30 on a Monday. WTF!!! I am now totally confused. Anyone had any experience with them? I would welcome some clarification. Thanks.

[PatriciaH]

We took a bankers draft but had to wait 2 days till it went into our account, we didnt let the boat go that we were selling till i saw in black and white it was in our account- if you are selling something wait till you see it in your account

[Loosehead]

The only difference between a cheque and a draft is that the bank draws the draft on it's own account having satisfied itself that it has taken the funds from the account of the prerson that wants a draft issued. It then behaves the same as a cheque with all the delays and clearing mechanisms. Essentially the bank is just guarenteeing for itself that the cheque won't bounce. It still takes 3 days even though the funds are cleared first. Its archaic yes!

[maviscoull]

i think they would be like a cheque....only difference is that the bank signs it and not the customer.

[Sammy Snake]

They take so long because as has been said, they still have to go through the clearing system (which takes 3 days) and they could still be stolen or forged.

[themas]

Bankers drafts can be forged (or stolen ones used). I've known of a case where this happened. The funds were actually cleared and credited to the payee's account and it was only two or three days later the bank told them it was forged and took the money out again. Unless you are absolutely certain where the draft has come from, you need to be very careful.

[Misty77]

A banker's draft can only be issued providing there are funds available in the account - whereas a cheque can be issued but will bounce if there is no money available. To be on the safe side, a bank usually tells you to allow 5 working days to clear, but they always clear quicker than that, usually 2-3 days.