A bank draft, also known as a "Bankscheck" in German, is a payment instrument issued by a bank on behalf of a customer. It's essentially a check that's guaranteed by the bank.
How does a Bank Draft work?
- Application: You, as the customer, apply for a bank draft at your bank.
- Payment: You pay the bank the amount of the draft plus any associated fees.
- Issuance: The bank issues the draft, which is a check drawn on the bank's account and signed by the bank.
- Payment: The recipient of the bank draft can deposit it into their account or cash it at a bank.
Benefits of using a Bank Draft
- Guaranteed Payment: Since the bank is guaranteeing the payment, the recipient can be sure that they will receive the funds.
- Security: Bank drafts are relatively secure as they are difficult to counterfeit.
- Convenience: They can be used to make payments to individuals or businesses, even if you don't have a checking account.
Alternative to a Bank Draft
In Germany, you can also use a "Überweisung" (bank transfer) to make payments.
Things to remember:
- Fees: Banks usually charge a fee for issuing bank drafts.
- Processing Time: It might take some time for the bank to process your application.
- Availability: Bank drafts are not available at all banks.
Overall, a bank draft is a convenient and secure payment method that can be a good option when you need to make a guaranteed payment in Germany.