A banker’s draft is a guaranteed payment instrument similar to a cashier’s check. It is a written order from a bank to another bank to pay a specified sum of money to a named payee. Banker’s drafts are often used for large transactions, such as real estate purchases or car loans, because they are considered to be a safer form of payment than personal checks.
There are a few key things to look for when checking a banker’s draft to ensure that it is legitimate. First, verify that the draft is drawn on a valid bank. The bank’s name and address should be printed on the draft, and you can call the bank to confirm that the draft is genuine. Second, check the date of the draft. Banker’s drafts typically have a limited lifespan, so make sure that the draft is not expired. Third, examine the signature of the bank official who authorized the draft. The signature should be clear and legible, and it should match the signature on file with the bank.
