From: BigMomma 
Newsgroups: uk.finance
Subject: Re: Bank draft.
Date: Wed, 02 Feb 2005 22:30:18 +0000

Eric Jones wrote:
> "BigMomma"  wrote in message 
> news:ctrd7j$cve$1@news7.svr.pol.co.uk...
> 
>>I know this is a bit basic, but I cannot understand what a "bankers draft" 
>>is.  How does it differ from a cheque in the name of the bank? How do you 
>>get a bank draft - just pay the bank cash? And does it have to be in a bank 
>>where you have an account?
>>
>>Thanks.
> 
> .........................................................................................................
> Bankers drafts are drawn on a Bank's head office whereby a bankers cheque is 
> drawn on a bank branch.To a customer there is no difference. Drafts are 
> usually for large amounts over £25k or so anything below normally gets you a 
> bank cheque, but of course each bank will have its own way of doing things.
> Normally these days (because of money laundering rules) you have to bank 
> with that bank to get a draft/cheque and the transaction will have to go 
> through your account ie if you turn up with cash they will pay that into 
> your account and then debit it again to pay for the draft.
> Eric 
> 
> 
Thanks guys.  In this case it is for a deposit for a flat for 1.2K. 
They say either a bankers draft or a cheque in the name of the bank.

Out of interest I have a few queries.

a) How does the reciever deal with a draft.  With a cheque in the name 
of the bank, they just pay it into an account, but what about the draft?
b) How do you get a draft in the bank.  Just go to the information desk?
c) If you came in with say 3K cash and wanted a draft what would the 
bank do?
d) Does the draft have to be made payable to someone like a cheque or 
could it be blank?
e) How long does a draft take to clear.  I understand that a bank cheque 
is cleared as per usual only is seen as more reliable.