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All you need is the recipient's name and account information. A great alternative to cheques with instant access to funds, no holds, and no risk of lost or stolen cheques.
The easiest way to secure a bank draft is by requesting one from your bank. But many banks allow you to obtain a draft even if you don't have an account. In this case, you'll have to pay upfront, using cash or a debit card, but the bank can issue you a check once they have these funds.
Bank drafts are issued by a bank after verifying available funds and withdrawing the requested amount to put on hold. Certified cheques are similar to bank drafts, but these funds aren't withdrawn until the cheque is deposited. Money orders are issued by a bank or Canada Post as a prepaid cashable certificate.
Types of Bank Draft Money Order. This involves the transfer of a defined quantity from one location to another. ... Certified Cheques. A common type of banker's cheque is a certified cheque. ... Demand Draft. ... Cross-border transaction. ... Certainty of funds. ... Ease and convenience. ... Authenticity.
A bank draft is a payment that is guaranteed by the issuing bank. Bank drafts are often used for larger payments such as a down payment on a home. Banks verify and withdraw funds from the payer's account and deposit them into an internal account, or a reserve account.