Banker's Draft/Cheque -when is money actually taken from account ?

john539

With a Banker's Draft/Cheque, when is the money actually taken from the account:
-when Draft/Cheque is issued ?
-when Draft/Cheque is presented & clears ?

I have a postal savings account.
Few months ago I asked for a cheque to pay a debt.

Got the cheque with the account book updated showing new balance & money debited.

I haven't used the Banker's Draft/Cheque to pay the debt yet.

Although I know the account book shows the money debited, the cheque hasn't been used yet.

So, I was wondering whether the money has actaully been debited from the account or is it only finally debited when the cheque goes through clearing.
.

morg_monster

A bank draft or BS cheque is supposed to be "as good as cash" so it is like you have the cash in your hand, and hence it is out of your account immediately. A "normal" cheque from your cheque book is rather a promise to pay someone, and so the money doesn't go out until someone takes you up on that promise (ie pays the cheque into their account).

jonesMUFCforever

If you leave it more than 6 months then it might become a 'stale' cheque, no good to anyone.

pinkthinks

This is how it went when I worked in a bank:

The money is transferred from your account into the bank's account immediately, as it's effectively the bank's cheque that they have written on your behalf and they want to make sure they have your money in their account for when the draft is paid. So if you haven't used the banker's draft yet, the bank still have your money in their account.