Bankers Draft

Traceie_Lou

Our buyers are going to pay their deposit on Friday and are taking a Bankers Draft to their Solicitors, We can't complete till this has cleared.

How long does it take for a bankers draft to clear?

Bargain_Rzl

Banker's Drafts are by definition "cleared" already. They leave your buyers' personal account at the moment they raise it at their bank, so in effect the buyer's solicitor "has" the money as soon as the buyer gives them the banker's draft.

My solicitor (when buying) said he needed the banker's draft BEFORE the day of completion to allow everything to happen in good time.

The thing you'll be waiting for clearance of is once the buyer's solicitor sends the funds by telegraphic transfer to your solicitor. This takes a few hours and you will complete once your solicitor confirms that they've received them.

dunstonh

As mentioned already, bankers drafts are cleared funds. However, banks and more so [ex] building societies often fob people off with managers cheques or counter cheques which are not treated as cleared funds. Many people think of these as drafts but they are not.

Alan_M_2

This is a common misconception, bankers draughts are gauranteed funds but not cleared funds, although I think this is a recent development.

They still take the same time to clear as a normal cheque.

I sold a car earlier this year and was paid by HSBC bankers draught (clearly written on the slip) I actually Bank at HSBC and had a row with them when they wouldn't let me draw against it. It took the usual 4 days to clear.

dunstonh

This is a common misconception, bankers draughts are gauranteed funds but not cleared funds, although I think this is a recent development.

Possibly recent. Back in my machine room days at the bank, bankers drafts were processed cleared. With manual waste you were expected to pick it up (although often missed) but the move to machine processing, had the waste machine pick up the sort codes of drafts automatically and put them through cleared.

sheraz2

Their is a little confusion over this one. SOme people say it's not cleared immediately others say it is. oNe things for sure though, they're guarenteed funds, unless the person who gives you one as payment has a broken English and a heavy Nigerian accent with a name like Roger Cross:eek:

clutton_2

i agree that it takes the same clearance time as normal - so what is the fllipping point !!!!

Alan_M_2

sheraz2 wrote:

Their is a little confusion over this one. SOme people say it's not cleared immediately others say it is. oNe things for sure though, they're guarenteed funds, unless the person who gives you one as payment has a broken English and a heavy Nigerian accent with a name like Roger Cross:eek:

What even if He wants to give me a cheque for more and asks me to write him one back for the difference?

eileenfromplaistow

My daughter's solicitor told us last week that a Banker's Draft is cleared funds, whereas a personal cheque would take 5 days to clear, so would need to be with them early.

Alan_M_2

That used to be the case, but has changed, I think within the last 12 months.

I think people often confuse guaranteed with cleared, not the same thing.

The idea of a draught is it's irrevocable, not necesarily available to draw against.

Mikeyorks

Traceie_Lou wrote:

How long does it take for a bankers draft to clear?

It takes exactly the same time as a normal cheque. Because it is a cheque. The distinction is it's drawn on one of the banks accounts - so the funds are 'guaranteed'. But it does not translate into cleared funds until it's been through the Clearing Cycle.

http://www.apacs.org.uk/resources_publications/faqs/cheques_16.html

If your buyers solicitors need cleared funds on Fri - then the draft or a personal cheque has to be with them tomorrow. Or they should CHAPS it during Friday.