Bankers drafts??

callansdad

Hi, i am just about to sell my car and i have been told that bankers drafts are the safest way to go but i am a bit dubious. Im not too sure what it is so could someone please enlighten me? How does it work and is it really a safe option. I don't want to risk losing that sort of money.

Thank you

soolin

Bankers drafts are not safe, treat them like you would treat a normal cheque.

In the old days (i remember them well) bankers drafts were as good as cash, but in recent years they have been problems of fakes and thefts of real ones.

Basically though a bankers draft is a cheque written by the bank on behalf of a customer. usually the customer pays the bank cash and the bank write the guaranteed cheque in return which can then be paid through an account as normal, but it is backed by bank cash.

Soo

scousemouser43

before letting go of the car could you not get the bankers draft checked out with the issuing bank\society and will their be a charge for this service?

best of luck

dunstonh

Bankers drafts are not safe, treat them like you would treat a normal cheque.

In the old days (i remember them well) bankers drafts were as good as cash, but in recent years they have been problems of fakes and thefts of real ones.

Bankers drafts are still safe and treated as cleared funds. However, not many banks issue proper bankers drafts now unless you really make that clear. You tend to get fobbed off with a "managers cheque" drawn on the branch which has far less security and can be stopped.

There is a common misconception that these counter cheques are as good as drafts when they are not.

pkrnts

Online bank transfer that removes the funds from the buyer's account instantly are the safest and quickest imo. Cannot be cancelled and done in 5 minutes.

jonesMUFCforever

dunstonh wrote:

Bankers drafts are still safe and treated as cleared funds. However, not many banks issue proper bankers drafts now unless you really make that clear. You tend to get fobbed off with a "managers cheque" drawn on the branch which has far less security and can be stopped.

There is a common misconception that these counter cheques are as good as drafts when they are not.

Bankers drafts and Managers cheques are one and the same ie they are drawn on the bank not the person.
Both go through the clearing system like any other cheque and I would not accept it as payment for the car unless it had been confirmed by the issuing bank that it was genuinely issued by them and cleared.

Bankers drafts and cheques can only be stopped if lost or stolen (before being presented for payment).

dunstonh

ejones999 wrote:

Bankers drafts and Managers cheques are one and the same ie they are drawn on the bank not the person.
Both go through the clearing system like any other cheque and I would not accept it as payment for the car unless it had been confirmed by the issuing bank that it was genuinely issued by them and cleared.

Bankers drafts and cheques can only be stopped if lost or stolen (before being presented for payment).

I will admit it has been a few years since I issued them but they were not the same thing.

A managers cheque was drawn on a branch suspense account effectively. The customer's funds were transferred into that and a managers cheque, looking like a normal cheque, was issued.

The bankers drafts were not normal cheques. They had graphics (pictures) across them and were drawn on the head office. Also, the waste machines processed them as cleared funds. Unlike the managers cheques which are processed as uncleared funds. Drafts were held in the safe. Managers cheques were held in a tin box outside of the safe. Staff were actively encouraged to issue managers cheques instead of drafts.

jonesMUFCforever

The bankers drafts were not normal cheques. They had graphics (pictures) across them and were drawn on the head office. Also, the waste machines processed them as cleared funds. Unlike the managers cheques which are processed as uncleared funds. Drafts were held in the safe. Managers cheques were held in a tin box outside of the safe. Staff were actively encouraged to issue managers cheques instead of drafts.

Believe me this has now changed!
A draft is drawn on Head Office a Managers cheque drawn on the branch both are drawn on the bank as I previously stated but do not go through your account as cleared funds. Only cash or a CHAPS payment does this these days.

dunstonh

Believe me this has now changed!
A draft is drawn on Head Office a Managers cheque drawn on the branch both are drawn on the bank as I previously stated but do not go through your account as cleared funds. Only cash or a CHAPS payment does this these days.

Is this across all the banks or just your bank? I ask that as I know some banks have different proceedures.

I note that apacs still make references to bankers drafts and Abbey still make references to bankers drafts and counter cheques as being two different things and that they still issue them. I have a couple of cheques to pay in to my bank and there are still some staff there from my time. I will ask them what they do now to see how it is changed at their end.

jonesMUFCforever

I can only comment about my bank of course.
Can I ask what would have happened in your day if a Bankers draft/cheque had been processed as cleared funds only for it to be returned later as a forgery or lost/stolen cheque which had been stopped?
For most people they serve a purpose as long as they are not under the impression that they are as good as cash.

rubix_76

Earlier in this thread it was mentioned that a bankers draft still goes through the cheque clearing system. The last time I used one (Ok it was five years ago) with Barclays I was charged a tenner and the cash went out of my account as soon as I signed the slip in the branch (They also cocked up one cheque, wrote another, and I was charged for two cheques, but that's another story ...)

I used my debit card last time I bought a Car, t'was much easier, and didn't cost a penny !!

Rubix