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
A checking account is a transactional bank account through which a person can make deposits and withdrawals of money, according to Investopedia. The money held in checking accounts is considered highly liquid because the account owner can easily withdraw it via checks or electronic debits.Full Answer >
Differences between traditional banks and online banks include online banks usually offer lower fees and better interest rates, while traditional banks offer face-to-face interaction and the ability to deposit money through a teller rather than an electronic deposit, says Business Insider. Both types usually offer the same level of security.Full Answer >
To open a bank account, bring a Social Security card, identification card, a driver's license and a passport if applicable, according to Commerce Bank. Other documents that are accepted include an ID from a foreign country.Full Answer >
According to BALANCE, a financial fitness program, when a charge hits your bank account and there are insufficient funds to cover it, either your bank may refuse the charge or allow your account to go into a negative balance. If the bank allows an overdraft, it typically applies a charge for each item that overdraws the account, and these fees can stack up.Full Answer >