Bank Draft

Also known as: Money Order, Cashier’s Cheque

A Bank Draft is an alternative to a typical cheque. You must purchase a Bank Draft from a bank teller. Once the bank draft is purchased, the purchasers funds are immediately put aside/withdrawn. This ensures that the payee will receive the money. Draft fees, range from $3 to $10, depending on the financial institution. Drafts are used for large payments, usually $1,000 to $20,000. With larger amounts, certified cheques or wire transfers are preferred. Drafts give the receiver of the cash, the courtesy of knowing the cheque will transfer successfully. Taking the risk of a bounced cheque can be embarrassing and time consuming if the receiver has to track down another cheque.

You may use a Bank Draft in purchasing a vehicle, roofing contract or down payment on a home.

A Bank Draft from RBC Picture from: http://www.godsdirectcontact.org.tw/eng/news/205/images/love073.jpg

A Bank Draft from RBC
Picture from: http://www.godsdirectcontact.org.tw/eng/news/205/images/love073.jpg

 

Cost of Bank Drafts

Scotiabank   –   $7.50

CIBC   –   $7.50

RBC   –   $7.50

TD Canada   –   $7.50

BMO   –   $7.50

Alternatives to Bank Drafts

  • Cash
  • Typical Cheque
  • Interac e-Transfer
  • Certified Cheque
  • Bank to Bank Transfer / 3rd Party Deposit
  • Wire Payment
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