Similar to cashing regular checks, a person can cash bank drafts, which are checks issued by a bank, by depositing it into an account. The issuing bank guarantees the availability of funds.Know More
A person asks a bank for bank drafts or cashier's checks. The bank issues drafts by drawing the funds from the person's account. Typical uses include real estate transactions and large purchases like cars.
In some instances, bank drafts are part of fraud schemes. Consumer protection sources recommend accepting bank drafts only from local banks. Also, calling the issuing bank to confirm availability of funds is a good precaution, especially if the bank is unknown, foreign or part of an Internet transaction. Once deposited, the account holder may be responsible for loss of funds.Learn more about Bank Accounts
Old bank accounts can be located by visiting the bank that holds the missing account, inquiring about the account with the Federal Deposit Insurance Corporation and checking with the state unclaimed property office, explains the FDIC. Banks require documentation for inquiries about deceased relatives' accounts.Full Answer >
A bank overdraft occurs when someone withdraws more money from their account than is available. This is also referred to as the account being overdrawn. This can be a common mistake for people who are unaware of their account balance or make a calculation error when trying to make payments with an account.Full Answer >
According to Accounting Tools, the purpose of a bank reconciliation is to compare the bank's records of transactions for an account with the account holder's records. Completing a regular reconciliation of all bank accounts helps to bring attention to variances, errors and fraudulent activity on the account. Common variances include bank fees, insufficient funds check deposits and incorrectly recorded transactions.Full Answer >
A bank account sort code is a six-digit number that is used in the United Kingdom and Ireland to identify the specific bank and branch where an account is held. The number is most commonly displayed as three pairs of numbers, each two digits in length.Full Answer >