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UK Banker's Draft
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A UK banker's draft is a cheque drawn on the bank (or building society) itself against either a cash deposit or funds taken directly from your own bank account.
A banker's draft is thought of as being a secure way of receiving money from someone you don't know and where you fear his/her cheques may bounce; or simply where it's not convenient or desirable to receive cash.
UK banker's drafts are commonly used for large purchases such as homes and cars. Your bank or building society will generally charge a fee for issuing a banker's draft.
Last Updated: July 2007 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.