difference between types of cheques

  march 09:22 18 Mar 2010

hiya everyone

have to get a cheque made out from the nationwide building soc to be paid in to the natwest bank, want the cheque to clear asap, the funds are there so the cheque wont bounce

have been told that nationwide do not do 'bankers drafts' so I have to have a 'building society cheque' made out, but then someone said that they are not the same as a 'bankers draft' so to ask for a 'counter cheque'

I know these things can be done online but I'm really not confident enough to do it as it involves a large amount, does anyone know the difference between the cheques & what should I ask for please


  HondaMan 09:49 18 Mar 2010
  carver 10:14 18 Mar 2010

Doe's that link mean you should start with a blank cheque.

  iscanut 10:19 18 Mar 2010

A conventional cheque, whomever it is drawn by will still take the usual 3 to 4 days to clear. A cheque drawn by a Building Socy is still a cheque although recipients of such would have more confidence in assuming it will be honoured. A bankers draft is paid for at the time of issue so is treated as cleared funds ( ie cash ) and is deemed to be more reliable than a cheque. It still has to clear through the bank's clearing process however.

  961 10:21 18 Mar 2010

You'd find it easier to arrange for nationwide to transfer funds electronically for you by BACS or CHAPS. They will do it for you so you don't need get involved in the electronics but you do need to give written instructions about the account for which the money is destined

BACS is usually the cheapest and can normally be arranged within a day or so. CHAPS is usually a same day transfer but may cost a transfer fee of around £25

The money will arrive in the destination account as cleared funds

  march 10:27 18 Mar 2010


I had looked online & have had a look at the link but its confusing; only thing I understand from that is a counter cheque is issued when you run out of cheques in a book but cannot find anything that explains what the difference is between the types cheques.

I know you can have a ordinary cheque stopped but a
'a bankers draft or building soc cheque cannot be stopped'
is that correct?

  march 10:34 18 Mar 2010

thanks for that I least I can follow what your saying & understand it;

would have thought that a building soc cheq would clear right away as the money is in the account

I know it can be done that way but would just prefer to get a cheq and hand it over I'm only just starting with handling banks & money & find things a bit daunting

  Kevscar1 11:00 18 Mar 2010

Wouldn,t it be easier to go in withdraw the cash then go and pay it into the bank.

  961 11:18 18 Mar 2010

A bankers draft cannot be stopped, which is why they are usually regarded as "cleared funds" and available to draw against as soon as they are paid in to an account

Although a building society cheque is capable of being stopped it is policy for them not to be stopped because such action would tend to destroy their usefulness.However, because they can be stopped they are not cleared funds and may not be available to draw against straight away, unlike a BACS or CHAPS payment

Note that all paper cheques and drafts have to pass through the clearing system for authorisation for payment when they reach the issuing bank. The difference is that bankers drafts will usually be regarded as cash equivalent when paid into the bank account and be available to draw against straight away. Cheques are not cleared funds until authorised by the issuing bank when they physically arrive there

  march 11:18 18 Mar 2010

lovely to hear from you Kevscar,hope things are looking better for you. I do keep thinking about you & send you & your family my best wishes

yes it would be easier,
only thing is its for a lot of money & wouldnt wish to be holding on to it for long moving it from building soc to bank means a walk of 15mins or so & its not a very pleasant area to do that in even when there are lots of people around.

have looked online and from what I can make out 961 is right that nationwide would complete a chaps transfer for me I think I just need to fill a form in (am in middle of reading their site info)

  march 11:29 18 Mar 2010


you explained that really well thankyou

I think I will ask nationwide to do a chaps transfer for me as you suggested I am just reading the site info but cant find where to print off a form (as yet)

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