What is a "building society cheque"?

Hi,
We're moving into a new flat we're letting from an agency. We have to pay the balance of the deposit and first months rent on the move in day. This comes to £2200 and according to their T&Cs must be paid by banker's draft or building society cheque. I have A&L, HSBC and Nationwide current accounts so have a few options. A&L is cheaper than HSBC for a draft at £10, but I don't know what a "building society cheque" is - I assume it is the equivalent of a banker's draft for a BS but I can't find anything about this on the Nationwide website.

Can anyone help? And I guess they also charge for this privilege? If it is £10 or more I will just use A&L but just wanted to find out a bit more first.

Thanks for your help.

(note how I'm not complaining about banks charging £10 to give me my own money... it's very difficult not to though!!!) :mad:
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Comments

  • Quasar
    Quasar Posts: 121,720 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A building society can give you a cheque iinstead of cash when you withdraw. So you ask your building society to make a cheque for £2200 payable to the letting agency, and the money is withdrawn from you account.

    These cheques are practically guaranteed because the money was already there in the first place, so they are as good as cash.

    I use building society cheques to pay my tax and any other large amount.
    Be careful who you open up to. Today it's ears, tomorrow it's mouth.
  • cupid_s
    cupid_s Posts: 2,008 Forumite
    I have a savings account with the halifax. And as such there's no cheque book facility. So they write large cheques out for me for no charge. I keep this account open only for that reason.
  • dunstonh
    dunstonh Posts: 119,196 Forumite
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    Building society cheques do not have the same protections that bankers drafts have. Although it is a common mistake to believe that they do.

    These "counter" cheques, whilst more likely to be successfully presented because the are issued based on funds being present, can have a stop put on them, unlike bankers drafts.

    Some banks issue "managers cheques" instead of drafts unless you explicitly request a draft as they are quicker to issue, less secure in holding and less time consuming to prepare. These are not as secure as Drafts.

    Many car dealers will no longer accept counter/managers cheques and require proper bankers drafts.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • morg_monster
    morg_monster Posts: 2,392 Forumite
    Thanks a lot guys, thats really helpful.

    Since it seems that for me as the presenter of the cheque/draft they are basically equivalent, I think I'll go for a charge-free nationwide cheque.

    I'll make sure not to mention your security points to the agency dunstonh, although it would be a fool who tried to defraud a letting agency this way since, well they do know where you live!

    Cheers guys.
  • oldwiring
    oldwiring Posts: 2,452 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thanks a lot guys, thats really helpful.

    Since it seems that for me as the presenter of the cheque/draft they are basically equivalent, I think I'll go for a charge-free nationwide cheque.

    I'll make sure not to mention your security points to the agency dunstonh, although it would be a fool who tried to defraud a letting agency this way since, well they do know where you live!

    Cheers guys.

    Unless you do a monnlight flit:p :D
  • walchas
    walchas Posts: 1 Newbie
    dunstonh wrote: »
    Building society cheques do not have the same protections that bankers drafts have. Although it is a common mistake to believe that they do.

    These "counter" cheques, whilst more likely to be successfully presented because the are issued based on funds being present, can have a stop put on them, unlike bankers drafts.

    Some banks issue "managers cheques" instead of drafts unless you explicitly request a draft as they are quicker to issue, less secure in holding and less time consuming to prepare. These are not as secure as Drafts.

    Many car dealers will no longer accept counter/managers cheques and require proper bankers drafts.

    I tried to stop a nationwide cheque to a Cowboy Builder and was told it could not be stopped. The Builder was featured on a T.V program, I went to the Builders office and they had disappeared. I went to the Police they said to stop the cheque I said I could not so they phoned Nationwide and was told it could not be stopped. If they can have a stop put on them can you tell me how to do it.
  • dunstonh
    dunstonh Posts: 119,196 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Bankers drafts are as good as cash. That is why they are requested rather than personal cheques.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dzug1
    dzug1 Posts: 13,535 Forumite
    10,000 Posts Combo Breaker
    dunstonh wrote: »
    Bankers drafts are as good as cash. That is why they are requested rather than personal cheques.

    Correct - but like cash they can be counterfeit and won't be paid if they are.

    Genuine ones won't bounce.
  • EarthBoy
    EarthBoy Posts: 3,177 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    walchas wrote: »
    I tried to stop a nationwide cheque to a Cowboy Builder and was told it could not be stopped. ..

    Technically, they can be stopped, like any other cheque, but many (if not all) building societies have a policy of refusing to do so.
  • dunstonh
    dunstonh Posts: 119,196 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EarthBoy wrote: »
    Technically, they can be stopped, like any other cheque, but many (if not all) building societies have a policy of refusing to do so.

    Managers cheques and building society counter cheques can be stopped but a proper draft cannot. As per comments higher up the thread.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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