CC

Hi all...

I put a bankers draft into my bank account yesterday afternoon for £x000. I transferred this money from one account to another.

I'm currently looking to purchase a car for several thousand pounds. I'm going to view one this weekend, the price of the vehicle has been agreed so if the car is ok, I'll be paying by bankers draft for the agreed amount.

I've just been in to my bank where I paid my bankers draft into yesterday. On checking my balance with my bankcard, the money is showing.

However, I go into the bank and ask the clerk for a bank draft for £x000, the price of the car. She says the maximum I can have, in the form of a bankers draft or cash, is £2000, because the bankers draft needs 5 working days to clear????

WTF

I thought the whole point of bankers draft was that they're as good as money. Bloody hell, a cheque only takes 2 working days!



[Edited by CC - 1/10/2003 1:51:26 PM]

I_dont_giveafvk

why not get the bank to up your o/d limit and pay with debit card?

davy1

A bankers draft is as good as cash,Ive had bankers drafts for a lot more than £2000.Ive had to arrange an appointment with the bank,but that is usually the next day.
Go back to the bank with a balaclava and some sort of lethal weapon and demand the money you are seeking,alternativly just wait a few days

marty_t3

I did the same to buy my scoob. Tranfered the money in from another account in the same bank on the Tuesday afternoon. Called the bank that afternoon to arrange for the bank draft. Picked the bank draft up the next day and bought the car. Was with the Royal Bank of Scotland. There was no mention of '5 days to clear'.

RB5320

I believe it depends on what bank the draft is drawn on. ie if you bank with the Halifax, for example, and you pay in a draft drawn by the Halifax, it counts as cash and is available immediately. Otherwise it takes x number of days to clear. The only advantage being that it is a bank cheque and therefore guaranteed by the bank (assuming it is not a forgery!)

Steve

carl

A bankers draft is like a cheque -- it takes a certain amount of time to clear. However, unlike a cheque, it is guaranteed and cannot be cancelled. That's why they're acceptable for buying cars -- the seller doesn't get the money straight away, but knows that the draft will clear.

CC

I_dont - cant up the o/d to that amount m8!!

Davy - Might consider the balaclava

Marty - thats what i thought i'd be able to do...may be some banks are different.

I've just been browsing the web, looked at sommat to do with abbey...states that bankers drafts NOT issued by themselves take certain number of days to clear just like a cheque does , must be that cos the bankers draft was written by barclays and put into a halifax account.

P1Fanatic

When I bought my scoob privately I came on here and asked about Bankers Drafts. Many people said that they arent as foolproof/guranteed as people think. Ive also read a few articles online to back this up. The guy (scoobynetter) would not take a Bankers Draft anyway so I ended up paying in cash (£15k). Only problem here is counting the damn stuff. Suprising how small £15k is in notes i.e. would have fit in a small lunchbox.

RB5320

yep. forged or stolen drafts are not uncommon. Probably the best thing to do would be for the buyer and seller to go together to a bank and pay in the draft. Presumably once the bank accept it you are ok? Dont quote me on this though - I am only guessing!

Steve

ChrisB

Or do an electronic transfer of the funds - that's how I paid for my Scoob.

chiark

If someone wants to pay me for a car, I ain't accepting a banker's draft as there's been too many nightmare stories. I know it's not the original question, but when someone posts that they're guaranteed money that will definitely clear, there needs to be a caveat or two

carl

[caveat]...if they're genuine bankers drafts[/caveat]

P1Fanatic

Surely that is not guaranteed either. Ive seen transfers taking over 3 days to get into my account.

apples24

iTrader: (1)

when ive recieved them i always ask for i.d and to see the bank card for the account the draught is from. but i must admit i am quite paranoid about them as lot forgeries about.

WISHING

When taking bankers draft i ask for the name and address of the bank that the money was draw from and then give them a call to confirm that they did indeed write a bank draft for that amount of money !
The banks are always very helpful and never once had a problem. (touch wood)

You know if you by a car from me i always ask for your passport and drivers licence !!

WISH

+Doc+

Just a quick note, Bankers Drafts can be easily forged just because someone is paying with one it isnt like having cash in your hand!!! I know someone who got stung for 22k by professionals.
Doc

CaptainBeakie

Cash - Clears immediately.

Electronic transfers
- CHAPS. It's same day but the costs £25 plus.
- Internet Banking. If it's the same bank (i.e. NatWest 2 Natwest) then it's the same day. Otherwise it's usually 3 days.

Drafts/Chqs.
- Building Society. If you get a chq from here, it's only a chq and not a draft unless you specifically ask for one (may be a charge). They take the money immediately from your account. Therefore you don't get the interest while the cheque is presented and is cleared.
- Banks. Drafts are drawn on the bank and with funds immediately removed from your account. If this is presented to another Bank (i.e Natwest and it's going into a Barclays account). Then the payees bankers do not receive the funds for it until after 3 working days and the payee doesn't receive interest on it until then either. You can ask for the draft/cheque to be 'specially presented', this means that the normal clearing systems rules change and the cheque is posted!!!! to the drawees bankers and is checked to ensure it's in order (i.e ok to pay - words/figures match and signature and date are ok).
The extra time added on for clearance (2 days to make it 5 days in total) is allowed for the cheque to be returned unpaid.

Nothing is simple in banking!!


Oh and cheques from Northern Ireland can be returned after 6 days!!!

Be careful out there!

CC

thx

good explanations....

looks only good ol' cash will suffice ...

also means no car for till next week

ChrisB

Nice bit of info CaptainBeakie.

Tiggs

paid elec. transfer for my car- nice and easy and no counting!, very clear audit trail as well.

T

Matt Churchill

The idea behind drafts was that they were only issued if the drawer had sufficient cleared money for the draft to be taken from their account at the time it was issued. Therefore, IF the draft is genuine it is guaranteed funds, as the Bank cannot and would not stop a genuine draft. However, if it was stolen or a forgery this would change things.

As a draft is a piece of paper (as a cheque is) it must go thru the clearing system, which is what takes the time. The item takes 3 days to reach the destination Bank branch. However, interest is paid between banks at the end of the second day - it is then "cleared for interest". However, it could be unpaid on the day it arrived at the Bank, or the following day under the "Inadvertence Rule" - if it were for more than £500, the unpaying bank must call your bank and advice them. However, if it is unpaid on the third day, they are not under any obligation to advice the bank to chich it is being sent. The item is returned via the post, and probably 2nd class - hence the two additional days - voila your 5 day clearing cycle - clear!! (Needless to sya if the draft was genuine then it could not be unpaid).

An automated payment would go via the BACS system - and automated clearing system, but still takes 3 days, albeit when it is your account you know it is cleared - so only 3 days and no doubt around the item. Unless, it was a CHAPS payment - a same day guaranteed system - cleared funds within one day - commonly used for house completions etc etc

Hope this makes some sense, basically, drafts are safer than cheques (but still have clearance issues around them), and seeing the money in your account is safer again!!

Matt

Matt

Andy Mid.

Careful with the CHAPS transfer though as I had a problem with it this week when I sold my scooby.

I'd heard that bankers drafts take 4 days to clear so I asked my bank how it could be done quicker. I was told a CHAPS transfer would transfer the money on the same day so the bloke who bought my car off me did that (at a cost of £20). I then got on a train to go and buy my new car 200 miles away in Newcastle.

When I got there later that afternoon, I checked my account and the money wasn't there so I rang the bank (Alliance & Leicester) only to be told that the money had cleared but it would be overnight before it was transferred into my account.

To cut a boring story short, I had to use my credit card (with a 1.9% fee - ouch). I've written a stroppy letter to A&L but I doubt I'll get anywhere....

CC

RB - u beat me to it....

even if the seller were to accept a bankers draft, i cant get one till the one i've just put in the bank has cleared, so i may as well pay by cash. Bleeding hell

[Edited by CC - 1/10/2003 2:19:27 PM]