Q:

What is a banker's cheque?

A:

A banker's cheque is given by a bank and payable to a specific payee, notes CIMB Bank. These cheques are used by individuals who do not have an account with the bank but would like to use a check as a form of payment.

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Full Answer

Wikipedia states that a banker's cheque is also known as a cashier's check. Since the bank, rather than the buyer of the check, is liable for paying the amount on the check, a banker's cheque is considered guaranteed funds. The main difference between a banker's cheque and a personal check is that the bank waits until the check has been cashed or deposited before withdrawing funds from the necessary account.

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