Converting Check to Cash: A Step-by-Step Guide

There are a lot of money matters that you should know of once you step into adulthood and one of them is knowing how to convert a banker’s draft into cash. Surprisingly, not a lot of individuals know of this important financial responsibility. It’s a must that you immediately know what to do just in case you are given one.

Before we begin, let’s talk about exactly what a banker’s draft is. A banker’s draft, or in layman’s terms – a check written, dated, and signed financial instrument that directs a bank to pay a specific sum of money to whom the check is addressed to. 

These are given on many occasions. For starters, some employers prefer handing out a banker’s draft instead of sending your salary to your account directly, These often include large sums of money which is why many would prefer writing a banker’s draft instead of handing out cash. 

If you’ve got a banker’s draft recently and you don’t know what to do, then you’re in luck. We’ve got a guide on how you can cash it in fast.

Go To The Bank

You can cash in your banker’s draft wherever possible. Some retailers like Walmart even allow cash-ins too. However, it’s often a better idea to go to the bank where the draft comes from so that you can easily coordinate with them when something happens.

It would be great if the bank that’s processing the document is the same bank that handles your accounts. An upside to this is that they can direct the money to your account instead of handing it to you in cash. As such, you should ask the bank draft giver to make a document for banks that you have opened an account with.

If you are opting to cash the check-in at a retailer, that would be possible as well. The main difference between cashing in at your bank, other banks, and retailers is that the fees will vary from outlet to outlet. Of course, the fees are less – sometimes it’s even free, if you cash the banker’s draft in the bank it is addressed to.

Also, consider that some bank apps let you cash in your banker’s draft on the go. The downside though is that the process does take longer and that there’s also a limit to how much the draft should be worth before you can cash it. If you aren’t comfortable with sharing your banker’s draft online, it’s much better to go directly to the bank itself.

Keep in mind that some banker’s drafts require you to open specific accounts at the bank. For instance, you might need a business account if you were to cash in a bank draft that’s directed to your business. Make sure to coordinate with the teller at the bank first.

Endorsing The Banker’s Draft

Before you give the banker’s draft to the bank, it’s important that you sign the back of it with your name. This process is called endorsing the draft and it’s very essential for documentation processes. Don’t worry about forgetting this as the banker will always remind you about it.

Aside from your name and signature, some banks require additional details as well. It’s completely natural for them to ask for other details such as your address, contact numbers, and more. All of these will be written down behind the banker’s draft as well so make sure to take note of the details they ask for.

Give The Banker’s Drafts And Documents

Of course, you shouldn’t expect the bank to give you cash immediately just because you have a banker’s note in hand. They’ll ask for personal documents that prove that you are indeed the person to whom the banker’s draft is addressed too. This is why it’s important that you carry the right documents with you when going to the bank.

Some of the documents that will be accepted include your passport, social security ID, driver’s license, and basically all documents issued by the government. Some banks will ask for more than one document so make sure to bring at least three on your visit to the bank.

There are many merits of a banker’s draft. For starters, they do away with the hassle of having to do cash transactions. They are also faster to manage on the side of the draft maker as all they have to do is write down the details on the note. Learning how to cash in a banker’s draft is arguably one of the important financial skills you need to have.