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Compare Bank Drafts And Money Orders

Bank Drafts vs. Money Orders is perhaps confusing to some people. Both of these are secure means of paying an individual. They are both generally accepted as good as cash.

Dec. 15, 2011 - PRLog -- Bank Drafts vs. Money Orders is perhaps confusing to some people. Both of these are secure means of paying an individual. They are both generally accepted as good as cash. They usually can not be redeemed by someone other than the person to whom they are made out. The difference though small may well be important at times.

Postal money orders are issued by the post office and payment is guaranteed by them. Banks also issue these and funds are drawn against the issuing bank. Both types of payments are issued in amounts only under 1000 CAD/USD: http://www.canadabanks.net/Loan-Calculator.aspx

A money order does have the advantage of being convenient and available from both post offices and banks. It can be issued in British Pound Sterling, CAD and USD and it can be used easily to send money abroad. Costs vary from the post office from 4.50 to 7.00 CAD. Banks charge a slightly lower fee of around 4.00 to 6.00 CAD and the variation in price depends upon the currency selected and the location it is to be sent.

Bank drafts are also paid in advance and therefore considered as good as currency. However Canadian drafts can be issued in almost any currency the person wishes and are usually most useful for sending larger payments. In the US the bank draft is usually known as a cashier's check. These are specially watermarked and printed to help deter counterfeiting since they are so commonly accepted as cash and a person's account may be credited instantly with the draft amount.

The charge for issuing a bank draft is around the same as a money order. A draft might be most useful when amounts over 1000 CAD/USD need to be sent. With larger payments a draft is a valid way to send funds securely.

Both of these means of payment are much more secure ways to pay or send money. They can only be cashed by the person whose name is on the draft or money order, whereas cash can be used by anyone if the payment is waylaid or misplaced. If either of these has gone astray then it might be replaced, but this depends on the circumstances.

Both of these pre-paid methods are recognized both at home and abroad. Both of them are also easily obtained from convenient locations and the fees are very minimal. While either will serve admirably for smaller amounts only the draft is usable for larger payments.

Manulife Bank (http://www.canadabanks.net/default.aspx?article=Manulife+...) and National Bank of Canada are chartered Canadian banks.

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Canadian Banks focuses on the Canadian banking industry, featuring articles about Canadian financial institutions, mortgage, credit and debt. The site also features loan, mortgage and credit calculators. http://www.canadabanks.net/

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Source:Canada Banks
Industry:Finance, Loans, Banking
Tags:Finance, Loans, Banking, Money, Bank Draft, Money Order, Loan Calculator, Cash, Bank, Checking Account
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