What are bankers' drafts?
A banker's cheque is a cheque drawn directly on the issuing bank (or building society if it is a building society cheque) rather than on the account of a customer, and signed by a Bank or Building Society official.
A banker's draft is not strictly speaking a cheque but, like a cheque, it is subject to the Bills of Exchange Act 1882 and is cleared in the same way as a cheque.
When issuing a banker's cheque or draft, the bank will debit the ordering customer's account so that the beneficiary can be assured that the cheque or draft is not likely to be returned unpaid due to lack of funds.
This means that, provided that the cheque or draft is genuine, the recipient can be certain that funds will clear. The timescales for clearing for value, withdrawal and fate apply.