Bank Draft

tom_tarbucket · 10-05-2015 6:09pm #1

HI

I bank with AIB.
If someone gives me a bank draft from Ulster Bank or Bank of Ireland and I go in to an AIB branch with the bank draft and lodge it, will the funds show up in my account straight away or do I have to wait a few days for it to clear.
OR will the member of staff know straight away if the bank draft is good

Spocker · 10-05-2015 6:21pm

It will show up on your account straight away

[Edit] But it might not clear for several days - AIB will advise you drawing against the funds

tom_tarbucket · 10-05-2015 6:30pm

Spocker wrote: »

It will show up on your account straight away

[Edit] But it might not clear for several days - AIB will advise you drawing against the funds

Thanks. But the member of the AIB staff should know if it's a good bank draft straight away yeah ?

Don't understand your last sentence : "AIB will advise you drawing against the funds"

Spocker · 10-05-2015 6:42pm

Staff will just lodge it to your account, same as the machine. It will show up in your account straight away, but if the draft bounces (it could, just sayin') and you've spent the funds, then AIB will just deduct it from you account again - i.e. don't spend it until it clears

tom_tarbucket · 10-05-2015 6:46pm

Spocker wrote: »

Staff will just lodge it to your account, same as the machine. It will show up in your account straight away, but if the draft bounces (it could, just sayin') and you've spent the funds, then AIB will just deduct it from you account again - i.e. don't spend it until it clears

Get ya. And will it show up in my account straight away if it's from a non aib bank.

msshono · 10-05-2015 6:53pm

While a bank draft is purchased with cleared funds it's still a paper item so when it's lodged it still has to clear. So it will show up as a transaction once it's lodged but you won't be able draw the funds until the lodgement has cleared (up to 5 days etc) - just like a cheque. The purchaser of a bank draft can place a stop on the bank draft, again like a cheque, so it could bounce on that basis.

tom_tarbucket · 10-05-2015 7:42pm

msshono wrote: »

While a bank draft is purchased with cleared funds it's still a paper item so when it's lodged it still has to clear. So it will show up as a transaction once it's lodged but you won't be able draw the funds until the lodgement has cleared (up to 5 days etc) - just like a cheque. The purchaser of a bank draft can place a stop on the bank draft, again like a cheque, so it could bounce on that basis.

Thanks. I suppose I'm
Just thinking of risk. Its for a car I'm selling privately. And buyer is giving me a bank draft. But then want to be sure that the bank draft is ok before giving him the keys.

Fred Swanson · 10-05-2015 7:49pm

This post has been deleted.

Spocker · 10-05-2015 7:55pm

tom_tarbucket wrote: »

Thanks. I suppose I'm
Just thinking of risk. Its for a car I'm selling privately. And buyer is giving me a bank draft. But then want to be sure that the bank draft is ok before giving him the keys.

Is it an option to wait until the draft clears? You could try and ring the issuing bank and ask them to verify the draft before having over the keys

Fred Swanson · 10-05-2015 7:58pm

This post has been deleted.

tom_tarbucket · 10-05-2015 7:59pm

Spocker wrote: »

Is it an option to wait until the draft clears? You could try and ring the issuing bank and ask them to verify the draft before having over the keys

suppose it could be yea, but then from the sellers point of view, he has handed me over a bank draft and has no keys, I could disappear of face of earth for all he knows, so a pain in hole I just dont know why in this day and age things have to take so long with bank stuff

Spocker · 10-05-2015 8:06pm

Does the buyer user online banking? Would that be an option?

Sam Kade · 10-05-2015 8:12pm

Fred Swanson wrote: »

This post has been deleted.

If it's genuine it's way better than a normal cheque because you know the money was paid whereas a cheque could bounce

tom_tarbucket · 10-05-2015 8:15pm

Spocker wrote: »

Does the buyer user online banking? Would that be an option?

He does I think. But is that a few days to send between different banks also ?

Fred Swanson · 10-05-2015 8:17pm

This post has been deleted.

Fred Swanson · 10-05-2015 8:17pm

This post has been deleted.

tom_tarbucket · 10-05-2015 8:23pm

Fred Swanson wrote: »

Next day if done by 1800.

But still same kinda situation. Buyer has transferred money snd still no keys.

Fred Swanson · 10-05-2015 8:30pm

This post has been deleted.

tom_tarbucket · 10-05-2015 9:10pm

Fred Swanson wrote: »

He cannot reverse the transfer.

That's what I'm saying. He has transferred the money and I will still have to wait for it to clear. So I don't want to give him keys until the transfer is done and I'm sure he won't like that.

I am the seller but I'm
Also looking at it from buyers point of view and putting myself in buyers shoes.

Sam Kade · 10-05-2015 11:16pm

Fred Swanson wrote: »

This post has been deleted.

A bank draft is drawn on a bank not a customers account so unless it's counterfeited or altered it is guaranteed. Unless you care to explain how a genuine bank draft could bounce?

Fred Swanson · 10-05-2015 11:19pm

This post has been deleted.

CiniO · 10-05-2015 11:31pm

tom_tarbucket wrote: »

Thanks. I suppose I'm
Just thinking of risk. Its for a car I'm selling privately. And buyer is giving me a bank draft. But then want to be sure that the bank draft is ok before giving him the keys.

IMO it's too much risk.
Ask buyer to pay with cash or no deal.
That's the easiest and safest way to do the deal.

msshono · 10-05-2015 11:37pm

Sam Kade wrote: »

A bank draft is drawn on a bank not a customers account so unless it's counterfeited or altered it is guaranteed. Unless you care to explain how a genuine bank draft could bounce?

Because the purchaser can place a stop on it. If they do that before it comes through clearing then it would be returned unpaid.

tom_tarbucket · 10-05-2015 11:40pm

CiniO wrote: »

IMO it's too much risk.
Ask buyer to pay with cash or no deal.
That's the easiest and safest way to do the deal.

I'm sure there are 100's of private car sales every day and they go smooth.

Maybe I'm just too anal.

But from my point of view, I get a bank draft that won't really clear for 3 days but yet I'm going to have to hand over keys. Fair enough I suppose, but if it dosent clear, car is gone from my possession and I'm fecked.

From buyers point of view, I'm asking them to give me a bank draft and then maybe saying : here, thanks for that, can you now wait 3 days before I give you the car keys.

I could then do a disappearing act and they have money paid and no car.

So as I said just looking from both sides.

So suppose cash is best. I bring to bank, they count, will check straight away if counterfeit (I think anyway) and lodge to my account and straight away it's there. Job done. Is this true of cash ?

But then I dunno, do people frown upon going around these days with relatively large sums of cash.

coylemj · 10-05-2015 11:42pm

Arrange to meet the buyer at a branch of his bank, both of you go up to the counter. He asks for a draft made payable to you, the clerk hands over the draft and you take it, then you give him the keys.

tom_tarbucket · 10-05-2015 11:49pm

coylemj wrote: »

Arrange to meet the buyer at a branch of his bank, both of you go up to the counter. He asks for a draft made payable to you, the clerk hands over the draft and you take it, then you give him the keys.

Sounds good.

However, does this earlier post apply ?

" A bank draft is drawn on a bank not a customers account "

coylemj · 10-05-2015 11:57pm

tom_tarbucket wrote: »

Sounds good.

However, does this earlier post apply ?

" A bank draft is drawn on a bank not a customers account "

Yes, the draft is drawn on the bank, that's the difference between a draft and a personal cheque. Unless he sets up a fake bank branch or the bank goes bust in the time it takes to clear, you're sound as a pound with a draft in your hand that a bank official has handed to you.

CiniO · 11-05-2015 12:45am

tom_tarbucket wrote: »

I'm sure there are 100's of private car sales every day and they go smooth.

They go smooth, but bank drafts are probably not the best and safest way of selling/buying cars.

But from my point of view, I get a bank draft that won't really clear for 3 days but yet I'm going to have to hand over keys. Fair enough I suppose, but if it dosent clear, car is gone from my possession and I'm fecked.

Exactly, no point to risk.

From buyers point of view, I'm asking them to give me a bank draft and then maybe saying : here, thanks for that, can you now wait 3 days before I give you the car keys.
I could then do a disappearing act and they have money paid and no car.

Again, same thing. Very risky for a buyer this time.

So as I said just looking from both sides.

So suppose cash is best.

Cash is very handy.
Everyone knows how it looks like. There are easy ways to check if it's not counterfeit (if you google a bit). And it can change hands instantly at the moment of transaction.
Definitely easier to check if cash is counterfeit than bank draft, as most people deal with cash everyday, but don't really with bank drafts.
I'd not have a clue if draft is real or not, but I could most likely easily say if cash was counterfeit or not.

I bring to bank, they count, will check straight away if counterfeit (I think anyway) and lodge to my account and straight away it's there. Job done. Is this true of cash ?

Of course. Once bank accepts it on the spot, it's yours.
However this can be only done at times when your bank is open, limiting car sales transaction time to only weekdays, without evenings, etc...

But then I dunno, do people frown upon going around these days with relatively large sums of cash.

Some people indeed are wary of dealing with bigger amounts of cash, but there's hardly any reasons for it.

CiniO · 11-05-2015 12:48am

coylemj wrote: »

Arrange to meet the buyer at a branch of his bank, both of you go up to the counter. He asks for a draft made payable to you, the clerk hands over the draft and you take it, then you give him the keys.

That sounds safe enough, but again - can only be done at bank opening hours.

coylemj · 11-05-2015 1:03am

CiniO wrote: »

That sounds safe enough, but again - can only be done at bank opening hours.

No solution is perfect. OP has to make a risk assessment but my attitude would be that if the prospective buyer starts putting obstacles in the way like he can't meet during business hours or he already has the draft and can't do like I suggested, I'm walking away.

CiniO · 11-05-2015 1:23am

coylemj wrote: »

No solution is perfect. OP has to make a risk assessment but my attitude would be that if the prospective buyer starts putting obstacles in the way like he can't meet during business hours or he already has the draft and can't do like I suggested, I'm walking away.

Absolutely.
I'd never sell a car without taking instant full payment at the moment of handing over the keys. Best in form of cash, or alternatively anything else giving 100% guarantee of being genuine like f.e instant bank transfer.

AFAIK bank transfers go instantly when buyer and seller have accounts in the same bank. But unfortunately there's not system in Ireland to do instant transfers between banks, so bank transfer won't work for most.

Bank Draft

Comments