Top Banker's Draft Facts

A banker's draft, also known as a bank draft, is a secure and guaranteed form of payment issued by a bank. It functions like a personal check, but because the bank guarantees it, it is considered a safer and more reliable form of payment than a personal check.

  1. A banker's draft is like a personal check but is guaranteed by the issuing bank.

  2. The payment is drawn directly from the bank's funds, making it a more secure form of payment than a personal check.

  3. Banker's drafts are commonly used for large transactions, such as real estate purchases or business payments.

  4. The recipient of a banker's draft can deposit it in their account just like any other check.

  5. Banker's drafts are considered a safer payment than personal checks because the bank guarantees them.

  6. Some banks may charge a fee for issuing a banker's draft.

  7. Banker's drafts are commonly used internationally, as they can be easily converted into the local currency.

  8. The funds from a banker's draft are usually available within a few days of deposit.

  9. Banker's drafts are not as easily subject to fraud or forgery as personal checks.

  10. Some banks may require identification and proof of funds before issuing a banker's draft.


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