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Certified Bank Draft vs. Cashier's Check
by Jim Bedsole
Guru bios

QUESTION: Is there a difference between a certified bank draft and a cashiers check? I am excepting a payment from a person in Canada and I live in the US, and he would like to send me a certified bank draft in US funds. 1) Is this safe for me to except? 2) Will my bank charge me a fee, due to being out of the US? 3) Most important to me, if I can and do except this check/draft how long should I wait before I am positive it has cleared his bank and the funds are secure in my bank? Thank you very much.

ANSWER: I don't know the answers to your questions about the similarities or differences between a certified bank draft from Canada and a cashier's check. However, I can suggest a source for the information that should know - the Bank of Canada. This is the Canadian equivalent of the Federal Reserve Bank in the US. Their website is at . Also you can contact them through the following contact information:
General information:
Bank of Canada
Public Information Office:
Telephone: 1-800-303-1282
782-8111 (Ottawa area)
Fax: (613) 782-7713
Mail: Public Information
Bank of Canada
234 Wellington Street
Ottawa, Ontario, Canada K1A 0G9

I'd ask them to explain the similarities and differences between a cashiers check in the US and a certified bank draft. I would have them especially clarify whether the instrument can be stopped or otherwise revoked once issued. Although your bank in the US may accept this item for deposit, it will not be entitled to the same availability requirements under Reg CC as a cashiers check would be (i.e., mandatory next day availability). It could be treated as a nonlocal item for either a case-by-case or exception hold (if a valid exception reason exists).

First published on 7/9/01

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